CREATING AN ENABLING ENVIRONMENT FOR WOMEN’S ENTREPRENEURSHIP

IN INDIA Hina ShahMay 2013

DEVELO

PMEN

T PAPERS 1304

South and South-West Asia O!ce

ESCAP

SOUTH AND SOUTH-WEST ASIA

OFFICE

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Disclaimer

Disclaimer: The views expressed in this Development Paper are those of the author(s) and should not necessarily be considered as reflecting the views or carrying the endorsement of the United Nations. Development Papers describe research in progress by the author(s) and are published to elicit comments and to further debate. This publication has been issued without formal editing.

For any further details, please contact:

Dr. Nagesh Kumar, Director

South and South-West Asia Office (SSWA)

Economic and Social Commission for Asia and the Pacific (ESCAP)

C-2 Qutab Institutional Area, New Delhi-110016, India

Email: sswa.escap@un.org

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Table of Contents

Foreword .................................................................................................................................................. 4

Abstract .................................................................................................................................................... 5

Introduction .............................................................................................................................................. 6

Data interpretation and analysis .............................................................................................................. 10

Existing research on women’s entrepreneurship ...................................................................................... 14

Key national trends of women’s entrepreneurship ................................................................................... 18

Primary data (Survey of women entrepreneurs)....................................................................................... 22

Recommendations .................................................................................................................................. 27

Case studies of women entrepreneurs ..................................................................................................... 32

Bibliography .......................................................................................................................................... 38

Annexure 1- Research tools ....................................................................................................................... i

Annexure 2 – List of tables ...................................................................................................................... xi

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Foreword

The Development Papers Series of the ESCAP South and South-West Asia Office (ESCAP-SSWA) promotes and disseminates policy-relevant research on the development challenges facing South and South-West Asia. It features policy research conducted by ESCAP-SSWA and by outside experts from within the subregion and beyond. The objective is to foster an informed debate on policy challenges facing the subregion and to share development experiences and good practices.

This paper was prepared by Ms. Hina Shah, Director, International Center for Entrepreneurship and Career Development for ESCAP, as part of the Indian component of a regional programme to promote an enabling environment for women entrepreneurs in various countries of Asia-Pacific. The programme was implemented by ESCAP in partnership with Goldman Sachs 10,000 Women Initiative, and with support from FICCI-FLO in India. The paper builds on the recommendations which emerged from the National Consultation on Creating an Enabling Environment for Women’s Entrepreneurship in India held on 19 February 2013 in New Delhi. It examines the constraints faced by women entrepreneurs in India and the potential for women’s entrepreneurship development, with a particular focus on micro, small and medium enterprises.

The paper underscores that women’s entrepreneurship is an important untapped source of growth in India, creating new employment opportunities and avenues for women’s economic independence. With only about 13 per cent of enterprises in the registered micro, small and medium enterprises sector being managed by women however, the paper finds that women’s entrepreneurship development has received scant policy attention so far. Based on a small-scale survey of women entrepreneurs in different states of India, the paper finds that sociocultural factors are important barriers to women’s entrepreneurial activities, while combining work and family life was a challenge for 65 per cent of respondents.

Support (financial and otherwise) for starting an enterprise came essentially from informal sources, in particular husbands, while a very small proportion sought and received help from Government schemes and programmes. Most respondents stated not being aware of the availability of schemes and programmes for women entrepreneurs.

We hope that this paper will contribute to expanding the dialogue on the entrepreneurial ecosystem in India, particularly women’s entrepreneurship which is still a largely untapped source of social and economic development.

Nagesh Kumar Director, ESCAP South and South-West Asia Office

and Chief Economist, ESCAP

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Creating an Enabling Environment for Women’s Entrepreneurship in India

Hina Shah*

ABSTRACT

This study was carried out with the aim to identify strategies and policies which could create an enabling environment for women entrepreneurs and/or would-be entrepreneurs in India. It aims to provide a set of practical and policy-worthy recommendations to promote the healthy growth of entrepreneurial activities and enterprises owned by women. The study was carried out based on existing research and secondary data, as well as the collection of primary data through a small-scale structured questionnaire of 63 women entrepreneurs in 12 states across India. Case studies of successful women entrepreneurs were also conducted and the information obtained supported the analysis of the environment in which women entrepreneurs operate in and the challenges they face. The study underscores that women’s entrepreneurship is an untapped source of economic growth in India, which has received scant policy attention so far. The study finds that sociocultural factors represent important barriers to women’s entrepreneurial activities, while combining work and family life is also a challenge for a majority of women entrepreneurs. According to the study, support for starting an enterprise came essentially from informal sources, with a very small proportion of women having sought help from Government schemes and programmes. The study concludes with a wide range of recommendations to promote a more enabling environment for women’s entrepreneurship in India.

* Director, International Center for Entrepreneurship and Career Development, India. The United Nations or its member States are not responsible for the views expressed, which should be attributed to the author alone.

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Creating an Enabling Environment for Women’s Entrepreneurship in India

Introduction

Background

Many women in India have attained prominent or leadership positions, rising to the highest echelons in every walk of life -- for example as entrepreneurs, industrialists, civil servants, police officers, airline pilots, scientists, engineers. Yet women must overcome additional barriers to have equitable access to the labour market, to access control over economic resources and entrepreneurial opportunities. The Entrepreneurship Development Process for Women in India is increasingly being recognized as an important untapped source of economic growth since women entrepreneurs create new employment opportunities and avenues for women’s economic independence.

The Micro, Small and Medium Enterprises (MSME) sector in particular, which plays a central role in the economic and social development of the country and is described as an “engine of growth” is attracting increasing policy attention. According to the MSME Annual Report 2011-12, the MSMEs account for 45 per cent of India’s manufacturing output and 40 per cent of India’s total export. From a gender perspective, the MSME sector is also gaining prominence as in the broad context of economic downturn, one cannot afford to overlook women’s contributions and the potential and challenges they face at different stages of the process. Despite scarce sex-disaggregated data on women’s participation in the MSME sector, it is recognized that a huge number of women in India are engaged in the MSME sector, the majority of them in the unorganized sector.

In the area of women’s entrepreneurship, and although government policies and promotion strategies have been giving new opportunities to women, few have come forward. According to the same MSME Annual Report 2011-12, only 13.72 per cent of enterprises in the registered MSME sector were enterprises managed by women, representing about 2.15 lakh (or 215,000 enterprises across the country). It is primarily since the last two decades that attempts to design programmes to promote women entrepreneurs as a part of national development plans have begun to be taken notice of by women. However, as this paper aims to demonstrate, institutional, financial, cultural, gender-­‐based, policy and legal framework based factors continue to hinder women’s participation in entrepreneurship.

Against this background, the main purpose of this paper is to assess the situation pertaining to women entrepreneurs in India, the constraints they face and the potential for further entrepreneurship development, placing a particular focus on the micro, small and medium industrial sector. Another purpose of this paper is to facilitate evolving a comprehensive package of policy recommendations to foster a more enabling environment for women’s entrepreneurship in India.

Women’s entrepreneurship encompasses self-employment, income generation, and the management of businesses/enterprises. For the purpose of this study, we shall be following the definitions of “Enterprise” as defined by in the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006. Micro, small and medium enterprises are classified therein into two categories: Manufacturing and Service.

- Manufacturing Enterprises are defined as “Enterprises engaged in the manufacturing or production of goods pertaining to any industry specifies in the first schedule of the Industries Development and Regulations Act, 1951”. They are defined in terms of plant and machinery.

- Service Enterprises are defined as “Enterprises engaged in providing or rendering of services”, in terms of investment in equipment.

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Table 1: Investment limits in plant and machinery/equipment for MSMEs

Type of Enterprise

Investment limits in plant and machinery/equipment (vide S.O. 1642(E) dt. 29.9.2006) Micro Enterprise Small Enterprise Medium Enterprise

Manufacturing Enterprise

< INR 25 lakhs* INR 25 lakhs – INR 5 crores

INR 5 crores – INR 10 crores

Service Enterprise

< INR 10 lakhs INR 10 lakhs – INR 2 crores

INR 2 crores – INR 5 crores

* 1 US$ = 51 INR (approx..), 1 lakh = one hundred thousand, 1 crore = 10 million (one hundred lakhs) Source: First schedule of the Industrial Development and Regulations Act, 1951

Scope of work

Over the past five decades, phenomenal changes have been taking place in the status and work-­‐place situation of women in India. Still, women entrepreneurs constitute a very small proportion of registered Indian entrepreneurs, only 13.72 per cent of enterprises in the registered MSMEs sector being women-led enterprises (that is approximately 215.000 enterprises).

There are also few institutions, whether governmental or non-governmental organizations working to facilitate women’s entrepreneurship. The functions and services which those supporting institutions fulfill are not widely known among women, would-be and established entrepreneurs.

This study is a part of a regional programme implemented by the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) in partnership with Goldman Sachs 10,000 Women Initiative. The Indian component of this programme was implemented in collaboration with FICCI Ladies Organization (FICCI-FLO) and consisted of the conduct of a national study, and the convening of a National Consultation on “Creating an Enabling Environment for Women’s Entrepreneurship in India” which was held on 19 February 2013 at the Federation House, New Delhi.

The present study aims to review the situation pertaining to women entrepreneurs in the country, identifying the constraints they face and the prospects for further expansion of this important sector, considering the non-trivial role which women entrepreneurs play in the economy. The study also aims to provide a range of policy recommendations to create an enabling environment for women’s entrepreneurship in the country.

It examines the factors influencing women’s entrepreneurship, also studying the support interventions provided by governmental- and non-governmental organizations/support agencies/business development services providers and other stakeholders.

Detailed objectives of the study:

- To chart out the characteristics of women-led enterprises and assess the policies and institutions related to the sectors at micro, macro and meso levels.

- To study the sociocultural environment which affects women’s entrepreneurial opportunities and creates obstacles institutionally, financially, culturally, politically, legally, etc.

- To delineate the potential of women-led MSMEs for generating sustainable livelihood for a large number of women.

- To study the profiles of business-owned by women in the informal and formal, MSMEs and analyze factors enabling or hindering their economic growth (including through case studies).

- To identify factors which help or hinder the growth of women enterprises and the causes thereof.

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- To examine and propose institutional interventions to further promote the healthy growth of entrepreneurial activities and opportunities among women.

Research Design

The study was conducted based on primary and secondary data collection. The most appropriate scope and levels of policies to be considered as part of the study were defined through a literature review. Various promotional, credit as well as representational institutions, training organizations, banks, credit organizations, Chambers of Commerce and association of women entrepreneurs were also contacted. Error! Reference source not found. is the schematic representation of the method followed for the study.

Figure 1: Schematic Representation of the Study

Part I Part II

Study

Preparation - Research Tools

Tools: Questionnaires Detailed interview through

telephone - (When required)

Secondary Data Collection

Primary Data Collection

Literature Review of existing research on women entrepreneurship

Identification of women entrepreneurs (63) Criteria for selection

- In business for at least 3 years - First generation entrepreneur

Review of national

policies and framework

affecting women

entrepreneurs

Review of regional/state level policies &

framework affecting women

entrepreneurs

Review of institutions &

agencies affecting women

entrepreneurs

Environment - Challenges - Barriers

Enterprise Study: - Product - Industry

group/sector - Employment - Production - Marketing - Finance - Revenue

Demographic study variables like: - Education - Experience - Age - Marital status - Social support

Socio-cultural study: - Status - Relationship at

home/community - Self perception

Thematic Data Analysis

Analysis and Conclusions

Recommendation and Suggestions

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Methodology

The study has been carried out based on literature review and the collection of both primary and secondary data. Primary data was collected from 63 entrepreneurs from 12 states in India (sample frame provided by FICCI-FLO and ICECD using a structured questionnaire.

Secondary data collection was based on literature review, impact reports of relevant studies, census reports, Government reports and a desk review of various websites. A consultative meeting on “Creating an Enabling Environment for Fostering Women Entrepreneurs” was held on 16th October 2012 where representatives of FICCI-FLO Ahmedabad; MSME-DI (Micro-Small-Medium Enterprise Development Institute) Ahmedabad; VIKSAT (Vikram Sarabhai Centre for Development Intervention, Ahmedabad Management Association); NMEW (National Mission for Empowerment of Women) represented by Gender Resource Centre (Government of Gujarat); KVIC (Khadi Village Industries Commission); banks and various women entrepreneurs participated. The schematic view of the primary and secondary data collection sampling plan is given in Figure 2.

Figure 2: Schematic View of the Sampling Plan (Primary and Secondary Data Collection)

Primary Data Collection Design

Secondary Data Collection Design

Population: Women Entrepreneurs (500 approx.)

Judgmental Sampling 1. First generation entrepreneurs 2. Enterprise operational for minimum 3 years 3. Enterprise falls under the definitions of the MSMED Act.

Women Entrepreneurs having fulfilled the above criteria

Stratified Random Sampling (Proportional to size of strata)

Eastern region – Western region – Southern region – Northern region

Selected women entrepreneurs (63)

Small Enterprise Medium Enterprise Micro Enterprise

Selection of Regulatory, Promotional, Credit and Representational Institutions (BDS Providers)

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Research Tools (Annexe I)

Information on all aspects of women in business/enterprises with -- regards to enablers and hindrances to initial stages of conception, inception and operation and access to credit, resources and information, knowledge, ownership and decision making -- was collected through the following questionnaires:

A questionnaire for individual women entrepreneur Institutional Questionnaire (during Consultative Meeting) –

Promotional/Credit/Regulatory and Representational institutions In-depth interviews for case studies

Through in-depth interviews, several case studies of successful women entrepreneurs with a various background were prepared. The information and lessons learnt which emerged from the case studies informed the analysis of enablers and barriers such as personal, environmental, sociocultural etc. for women’s entrepreneurship in India.

Data interpretation and analysis

Analysis of Policies, Legal framework and BDS providers

This section attempts to review how the policies aim to bring about structural changes in every five-year plan and the subsequent adjustments impinged on women entrepreneurs in India. To assess the impact of policies and legal framework on women entrepreneurs, it is necessary to examine the types of policies adopted -- which are mainly macro- and to see how those impinge on women at a micro level. The impact of those policies depends not only on the very nature of the policies but also on whether they are gender-specific or gender-neutral.

Key Findings Key Findings from the analysis of policies, legal framework and BDS providers are organized under the following headings:

Government efforts for women’s entrepreneurship development Civil society’s efforts for women’s entrepreneurship development Existing policies for enterprise development Government schemes and programmes to support entrepreneurial opportunities for

women BDS Providers: Supporting institutions

Government efforts for women’s entrepreneurship development

- Issues related to women's economic empowerment reflect wider concerns for poverty alleviation in the policy and plans of the Government of India. From the 1980s, women have begun to be acknowledged as not just a special segment of the population but core human resources in India, which need targeted programmes.

- A progressive increase in the plan outlays over the last six decades of planned development has occurred, to meet the needs of women and children by adapting National Policy for Empowerment of Women (2001). The outlay of Rs. 4 crores† (40 million) in the First Plan (1951-56) has increased to Rs. 7,810.42 crores in the Ninth Five-Year Plan, and Rs. 13,780 crores in the Tenth Five-Year Plan. There has been a shift in the government efforts for

†† 1 crore = 10 million (one hundred lakhs)

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women development from a “welfare”-oriented approach in the First Five-Year Plan to one of “development” and “empowerment” of women in the consecutive Five-Year Plans (Statistics on Women in India 2010, National Institute of Public Cooperation and Child Development, New Delhi, India).

Civil society’s efforts for women’s entrepreneurship development

- One heartening feature of the scenario related to women’s empowerment in India over the 1980s has been the increasing key role played by civil society. Civil society’s participation in the process has spanned a variety of levels; implementing programme or facilitating agencies at the grassroots; providing training to women and to government staff in women’s programmes; working with the State and central governments and commercial banks in pilot projects; doing field research, providing feedback and critiquing policies. In spite of much good work, civil societies still constitute a miniscule developmental force in the face of the country’s size.

- The women’s movement and a wide-spread network of civil society with strong grass-roots presence and deep insight into women’s concerns have contributed to inspiring initiatives for the empowerment of women.

- A wide gap however still exists between the goals enunciated in the Constitution, legislation, policies, plans, programmes, and related mechanisms, and the situational reality of women in India. (National Policy for the Empowerment of Women (2001)).

Existing policies for enterprise development

Various policies of MSME for women’s entrepreneurship development play a major role in this process. After reviewing existing policies and the way they impinge on women enterprises, the key findings can be classified under the following broad headings: 1. Regulatory Policies; 2. Promotional Policies; 3. Credit Policies; 4. Representational Policies.

Those categories are treated as mutually exclusive for the purpose of the analysis. However, in practice, many policies tend to have features mixed across more than one of the above categories. To measure the benefits offered to women in enterprise development, the policies are further categorized as: i) Women-specific Policies – where 100 per cent of allocation is meant for women; ii) Pro-women policies - which incorporate at least 30 percent of allocation for women or are significantly beneficial to women and; iii) Gender-neutral policies - meant for the community as a whole (both men and women). Key findings are summarized below: 1. Regulatory Policies: Policies concerned with ensuring compliance, by individual women

entrepreneurs, firms, with laws, and the rules and regulations laid down under those laws for various aspects of a business are classified as regulatory policies. Those are related to: Registration and incorporation, licensing for production and quotas for scarce raw materials, taxation, labour wages, welfare and safety, environmental protection, consumer protection – quality and standards and specific subsector laws and rules, etc. One can conclude the following:

- Regulatory policies are well structured for enterprise development; most are gender -neutral, few women-specific.

- In practice, regulation has become distorted and many regulations are too complex to be implemented effectively.

2. Promotional Policies: Policies that have been applied directly or indirectly to women for promotion of self-employment and entrepreneurship, specific subsectors, traditional industries and industries in backward regions are classified as promotional policies. Those are

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related to self-employment and entrepreneurship. Key points arising from a review of those policies can be summarized as follows:

- Inadequate attention is given to promotion of primary resource base, physical and social infrastructure (lack of literacy, skill building, etc.) for small and micro entrepreneurial activities for women.

- Promotional strategies adopted by the Government have often sought to preserve employment rather than further develop the economic potential.

- There have been numerous efforts to promote women’s entrepreneurship and subsectors, even though the overall policy framework is gender -neutral.

- Only the micro credit and women and industry national policies for the empowerment of women have very specific gender focus.

3. Credit Policies: Policies that have been applied directly or indirectly to women for credit and

finance support for business are credit policies. They relate to credit and finance support and institutional arrangement for credit and finance support. The following can be said in relation to those policies:

- Those policies increase direct lending to selected sectors such as agriculture and small -scale industry; it was initiated in priority sectors first and then extended to specific categories such as rural poor as part of Government schemes.

- The Indian credit system comprises of two main streams: a) the commercial banking system including commercial banks and regional rural banks; b) the cooperative credit system which extends subsidized credit. Besides marginal attention accorded to the credit needs of micro enterprises, the main focus remains on subsidized credit. Almost all those policies are gender-neutral.

- Very few opportunities are available for women in terms of grant, financial support and credit if they aim to start their own business.

- Major policies are gender-neutral and very few policies are specifically for women entrepreneurs.

- Policies are a mix of welfare and credit for women entrepreneurs: most of the nationalized banks have to offer loans to women entrepreneurs as a policy.

4. Representational Policies: Those are policies which ensure broad-based citizen participation in the processes of formulation, implementation and monitoring of policies and regulations that affect them, and citizen control over the affairs of promotional agencies (chamber of commerce, industries associations, workers, trade unions, etc.) meant to serve them. This includes about four groups: Producers (small artisans, large entrepreneurs) traders, workers and consumers.

- There are no major policies in effect to ensure representation of women entrepreneurs in policy-making process and institutions.

Government schemes and programmes for women’s entrepreneurship development

- In India, the MSME development organizations, various State Small Industries Development Corporations, national banks and NGOs are conducting entrepreneurship development programmes to cater to the needs of potential women entrepreneurs, who may not have adequate educational background and skills.

- Several other schemes of the government at central and state level exist, which provide assistance for setting up enterprises for women to make them economically independent.

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- Significant schemes are prevalent in the states of Kerala, Tamil Nadu, Goa and Haryana for the development of women entrepreneurs. Those women-specific schemes are: Scheme for Women Entrepreneurs to set up Industrial Units: Kerala, Mahila Coir Yojana: Kerala, Entrepreneurship Development Programme for Women: Tamil Nadu, Women's Training-cum-Production Centres and Stipend: Haryana, Swayamsidha (Indira MahilaYojna): Haryana and Incentives to Women Entrepreneurs Scheme, 2003: Goa.

- In 2010, The National Mission for Empowerment of Women was launched by the Government of India in order to strengthen overall processes that promote all-round development of women. The National Resource Centre has been set up which functions as a national convergence centre for all schemes and programmes targetting women. Some of its focus areas are skill development, micro credit, vocational training, entrepreneurship and self-help group development.

BDS Providers: Supporting Institutions

BDS providers and supporting institutions which undertake a variety of activities encompassing credit, business skill training, technical and technology training, employment creation, marketing services, legal assistance, psychological counseling and some social welfare trade programs are further classified as: 1. Regulatory institutions; 2. Promotional institutions; 3. Credit institutions; 4. Representational institutions

1. Regulatory institutions: The functions of regulatory institutions include collection of prescribed revenue, inspection to ensure compliance with various laws, initial registration of various units, and filling of various reports and returns. None of them are gender -specific nor gender-sensitive.

2. Promotional institutions: Promotional institutions mostly exist within the government sector. They include institutes mandated to promote technology and train manpower; corporations and federations mandated to promote the overall development of various sectors, especially the small-scale sector, and to organize the sector; directorates, councils and boards mandated to coordinate and promote the development, and to formulate policies and oversee their implementation. No specific promotional institutions are focused on or are for women’s entrepreneurship except a few training and development institutions.

3. Credit Institutions: Credit institutions in the women enterprise development can be categorized as: Mainstream financial institutions (commercial banks, regional rural banks, cooperative banks and state financial corporations), various kind of promotional institutions which have provision of credit as one of their important activities (subsector-specific promotional institutions such as corporations, apex cooperative societies, boards as well as specific target group institutions) and private channels of finance (traders, financiers and money-lenders). Access to financial resources for women entrepreneurs or would-be entrepreneurs is not as easy as it is for male entrepreneurs. Women who have obtained approval, grudgingly or otherwise, from their husband/family, usually do not obtain financial contribution towards the capital required for the business.

4. Representational institutions: Representational institutions are i) formed, owned and controlled by either the producer-entrepreneurs themselves in a specific sector or their representative or ii) indirect representation through voluntary agencies and the corporate sector. At present, a large number of NGOs are involved in supporting women entrepreneurs. It is noteworthy that this category of institutions is still nascent and still inexistent in many sectors. Among the different type of representational institutions, the most important are the associations of producers and in certain states, women entrepreneurs ’ associations. Apart from the various regulatory, promotional, credit and representational institutions working for the development of women’s entrepreneurship, other associations

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and agencies that are making important contributions at State and national levels to promote women entrepreneurs include: Federation of Indian Women Entrepreneurs (FIWE) - It is the outcome of resolution passed in 4th International Conference of Women Entrepreneurs held at Hyderabad. It was founded in 1993. FIWE interacts with various women’s associations in the country to facilitate members’ involvement in a range of activities. Small Industries Development Bank of India (SIDBI) - is an institution established at the national level to provide facilities for small-scale industries. As a part of developing small industries by women entrepreneurs, SIDBI has introduced specific schemes for women. Khadi and Village Industries Commission (KVIC) - established under the Khadi and Village Industries Commission Act, 1956, as a statutory organisation engaged in promotion and development of khadi and village industries to provide employment opportunities in rural areas and for women entrepreneurs. Micro, Small and Medium Enterprises Development Organisation (MSME-DO) - It is the apex body for assisting the Government in formulating, coordinating, implementing and monitoring policies and programmes for MSMEs in the country. MSME-DO provides a comprehensive range of common facilities, technology support services, marketing assistance, entrepreneurial development support among others, to women entrepreneurs. National Bank for Agriculture and Rural Development (NABARD) - NABARD is an autonomous financial institution which provides liberal credit to rural women entrepreneurs. International Centre for Entrepreneurship and Career Development (ICECD) - ICECD is a registered trust which has been involved in training women entrepreneurs for MSME development in large scale over the last 25 years. It has extended its operations internationally and has supported women entrepreneurs in over 55 countries.

Existing research on women’s entrepreneurship The desk research reviewed studies conducted on women’s entrepreneurship and examined whether other socio-economic variables had an impact on entrepreneurship and how these impacts differed by sector. Other aspects, among others, that these studies brought out were: How do women entrepreneurs differ from men entrepreneurs? Do they approach entrepreneurship in the same way? What motivates women entrepreneurs? What experiences influence their choice of becoming entrepreneurs? Have business development support services contributed to the process of women becoming entrepreneurs? Is credit access available for women?

It also involved identifying key trends in the women’s entrepreneurial process and analyzing the policy and legal framework and institutional support system existing (as BDS) at national and regional levels.

Key Findings Based on the review of existing research on women’s entrepreneurship, the following key findings were derived, which attempt to review the impact of sociocultural factors and other environmental factors as enablers or barriers to women entrepreneurship. Those learning points are summarized under the following headings: - Conceptual understanding of women entrepreneurs - Status of women entrepreneurs in India - Sociocultural context of women entrepreneurs - Historical patterns of women’s entrepreneurship in India

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- Gender inequality - Other challenges and obstacles that women entrepreneurs face

Conceptual understanding of women entrepreneurs

- Women entrepreneurs are influenced by both push and pull factors. Pull factors include: Aspirations for autonomy and independence, personal satisfaction and achievement, or search for a challenge, challenging/rejecting gender stereotypes, gap in the market, etc. - Push factors include: dissatisfaction with the labour market, need for greater income, unemployment, desire for a better life or higher earnings, financial incentive and motivation from government/schemes for assistance, attraction of high profit margins, etc. Status of women entrepreneurs in India

- A report published by ESCAP in 2005 titled ”Developing Women Entrepreneurs in South Asia” pointed out that in India, a majority of women entrepreneurs in SMEs fall within the age group 25-40 years. The states of Gujarat, Maharashtra and Karnataka count a greater proportion of entrepreneurs, mostly women from families which are already in business or have service-related backgrounds. - The Indian society has evolved as a traditionally male-dominated one. Women tend to be

considered as the weaker sex and socio-economically depended on men throughout their life. Women mostly occupy subordinate positions and execute decisions generally made by other male members of the family.

- Despite an equal population, very few women were self-employed and the majority of them were engaged in the informal sector like agriculture, agro-based industries, handicrafts, handloom and cottage-based industries.

- Sixty-five per cent of the population in India live in villages; Self Help Groups (SHGs) have paved the way for economic independence of rural women involved in micro-entrepreneurship.

Sociocultural context of women entrepreneurs

- Each and every state in India has a culture of its own. There are institutions, traditions and rituals which foster values, modes of making choices and define relationships between men and women and their roles in both home and work settings.

- Women have to play multiple roles; as a wife, mother, parent or daughter and tend to suppress their real aspirations and identities as they play different roles simultaneously in the community. Women in rural areas, with low literacy rates often take up self-employment to meet the pressing economic needs of their family.

- In the urban context, educated women do not want to be confined to their houses and want equal treatment and respect from their partner. Women entrepreneurs enjoy better status within their family and manage multiple responsibilities provided they receive the crucial family support to do so.

Historical pattern of women’s entrepreneurship in India

- The last two decades have witnessed phenomenal changes with regards the status and work place participation of women in India. Women’s entrepreneurship development has emerged particularly in the wake of increasing globalization, with the support of progressive social, economic and political cross currents, technological advancement, and the media.

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- In the 1950s, only those women who had no male income-earners within their family became themselves income generators. In the 1960s, women begun to start small enterprises at home. Those were activities for self-occupation rather than for achieving financial autonomy. In the 1970s, income generation and career choices became equally important for many women. In entrepreneurial roles, the women increasingly wanted their enterprise to grow and succeed. Women often joined their fathers’ or husbands business as contributing partners on an equal footing in the 1980s. They made personal choices, stood up for their convictions and had the courage to make new beginnings. The women in 1990s increasingly learnt to live alone, travel alone and if need be to rear children alone. In the twenty first century even more opportunities arise for women and they increasingly venture to build enterprises.

Gender inequality and lack of awareness of existing schemes

- Gender inequality remains widely prevalent within the Indian society. According to the 2013 Human Development Report (UNDP, 2013) India ranks 132th out of 186 countries in its gender inequality index. This makes it South Asia’s worst performing country after Afghanistan. Pakistan, Nepal and Bangladesh, which have lower HDIs, all do comparatively better than India when it comes to gender equality. Factors which contribute to gender inequality in India include high levels of illiteracy, the lack of decision-making power over child bearing and early marriage of women, which in turn limit the chances of women starting a career and becoming entrepreneurs.

- There is no dearth of policies and credit schemes, especially for micro enterprises in India. Existing schemes of credit and support does not reach out to all in urban and rural areas however, since most of the lending and supporting institutions do not have any awareness -building mechanisms.

Other challenges and obstacles women entrepreneurs face

- Availing finance and juggling many responsibilities are major hurdles faced by women in initiating, requiring and managing an enterprise. Other hindering external factors include gender discrimination, inaccessibility to information, training opportunities, infrastructure , etc. Some internal factors such as risk aversion by women, lack of self-esteem and self-confidence, lack of vision etc. also create hinder women’s entrepreneurship.

- Lack of or insufficient education facilities results in lack of knowledge and information about availability of raw material, access to finance and Government’ schemes and facilities and other existing or upcoming opportunities. In India, as per the 2011 census 30 per cent of women are illiterate compared with 13 per cent illiteracy among men.

- Women in India are mostly economically dependent from their husbands which reduces their ability to bear the risks and uncertainties involved in launching a business. The educational level and family background of their husbands also influence women’s participation in entrepreneurship.

Lack of awareness about opportunities Lack of awareness amongst women about the financial assistance offered (incentives, loans, and schemes) by the institutions in the financial sector is one of the major challenges. Hence, in spite of financial policies and programmes for women entrepreneurs, financial support has reached only few women entrepreneurs.

Achievement motivation is found to be scarce among women because of the Indian socialization pattern and socio-cultural factors which are gender biased. Their domesticated role is widely accepted and assumed.

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- Although the Indian society is fast evolving, it remains a male-driven / patriarchal society in which women have to fight many battles in order to become successful entrepreneurs. Although the principle of gender equality is enshrined in the Constitution of India, which confers equal rights and opportunities to both men and women, in practice, women are still widely considered as “abla” i.e. weak. This de factor gender inequality serves as a major barrier to women’s entry into business.

- In India, parental immovable property (land/building/house) or business goes to the male child by succession. This is one amongst the many reasons why women face difficulty in obtaining finance, managing the working capital and credit. In addition, women entrepreneurs often have to take loans in the names of their husbands, fathers, or brothers and consequently by default involve them into the business.

- Women entrepreneurs often do not have a proper organizational set-up to pump in a lot of money for canvassing and advertisements. They have to compete with seasoned men entrepreneurs and such competition often results ultimately in the liquidation of women-led enterprises. Gender-insensitive business development support systems (BDS Providers) often create discriminatory environment for women entrepreneurs in the process of starting and managing their businesses, especially during registration, finances procurement, marketing, etc. sectors that are all male-dominated.

- Women need to devote considerable amount of time for their business if they want it to grow. Meanwhile by contrast, if a woman is unable to devote sufficient time to her family, many conflicts will emerge. If family members are not supportive, cooperative or encouraging, women are most likely to choose not to pursue an enterprise, as Indian women typically place more emphasis on family ties and relationships. Married women have to walk a fine line between business and family. Women's family and personal obligations are sometimes a great barrier for succeeding in a business career. Only few women are able to manage both home and business efficiently, devoting enough time to perform all their responsibilities.

- After the challenges related to accessing finance, marketing their products/services is yet another common problem. Maintaining an existing business or accessing fresh business opportunities requires strategic marketing skills. Women entrepreneurs may not be as comfortable as male entrepreneurs in areas where they interact mostly with men. They face challenges due to socio-cultural and psychological factors which makes them less assertive, less communicative and less able to negotiate and garner support for their decisions. Apart from that, the size of operations is often too small to allow marketing at national/state level, women lack mobility owing to their household responsibilities or their inability to travel alone, in addition to the lack of information regarding channels of distribution, , or even their centralized business processes may prevent them from travelling outstation (production and other factors may suffer in their absence.) In the international markets of imports and exports, very few female entrepreneurs are found to be exporting or contemplating export. Apart from above-cited limitations related to the scale of marketing, the procedural requirements of export may be a drawback to attempting to tackle the export market.

- Coordinating factors for production also represent a challenge for many women entrepreneurs. They cannot easily coordinate the production process, particularly with the ever changing technology. Very few women can sustain such production situations. Women’s flair for technology again, depends upon their sociocultural upbringing, which may make them believe it is a men-dominated field. Women who aspire to become entrepreneurs would find it challenging to keep abreast of technological advancements. The installations of new machineries during expansion of the productive capacity and similar factors may discourage women entrepreneurs from venturing into new areas. Women-controlled businesses are often small and it is at times difficult for women to access the information they need regarding technology, technical training, innovative schemes, concessions, alternative markets of

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technology, etc. Very few women entrepreneurs make use of advanced software available like statistical softwares, SAP, Accounting Packages like TALLY, Animation softwares 3D MAX, and even internet facilities.

- However, technology utilization and dependence in businesses vary depending upon the type of enterprises. Women who enter areas requiring highly technical knowledge are either supported by their husband or achievement-oriented. Once woman opt for a product or service that is technical in nature however, they become comfortable with it very quickly. They learn to select machineries, product attributes, deal with technical problems and oversee technical engineers. They too access technology through exhibitions, brochures and other materials sent by suppliers.

- Another challenge encountered by women entrepreneurs is a lack of management skills, usually because of lower propensity of previous business/job experience. Furthermore, support providers discriminate against women entrepreneurs to a large extent when providing consultations and guidance.

- One more intricate problem faced by women entrepreneurs is the management of the working capital. Working capital is required for maintaining finished stock to meet the market demand, for production and for meeting marketing and other administrative expenses. It is generally very difficult for women entrepreneurs to access such loan facilities from financial institutions as women may be unable to provide security or guarantee.

- Society’s attitude towards women entrepreneurs, unequal opportunities amongst men and women and broadly a lack of self-confidence haunt women entrepreneurs. This low level of self-confidence, will-power and optimistic attitude amongst women create a fear of committing mistakes which affects their business. The family members and the society are often reluctant to stand beside their entrepreneurial endeavour.

- Women tend to start business about ten years later than men, on average. Motherhood and traditional socialization pattern have been cited as reasons for delayed entry into entrepreneurial activities.

Key national trends of women’s entrepreneurship

Any strategy aimed at economic development would be imbalanced without the involvement of women. The hidden entrepreneurial potentials of women have gradually been changing with the growing sensitivity to the role and economic status of women in the society. Besides skill, knowledge and adaptability in business being the main reasons for women to emerge into business ventures, there are various environmental factors like Policies, Legal framework, Market and Geographical areas which influence women entrepreneurship development process. As this study proposes, among other objectives, to understand trends related to MSME development in India from a gender perspective, the size of the country and its immense diversity will play an important role while analyzing the participation of women in this sector.

Major challenges Support and approval of the husbands seems to be a necessary condition for women’s entry into business. Lack of such family approvals make for a considerable hindrance for women.

When family members are not in favour of supporting their ladies to take up the business, naturally they do not support with the finance required for starting a business unit. Banking and financial sectors feel the same way and often refuse finance on the bases of the gender bias.

Many women led enterprises have imperfect organizational setups as compared to men and face severe competition from other groups.

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Key findings The major findings are organized as follows:

o Ownership by gender of owner o Percentage distribution of enterprises by gender of owner and sector o State wise Entrepreneurship Profile o State wise and Area wise Entrepreneurship Profile in Percentage o Type of enterprise vs. entrepreneurship profile o Nature of activity vs. entrepreneurship profile o Type of organization vs. entrepreneurship profile o Credit accounts for all scheduled commercial banks in India

Ownership by gender of owner

The proportion of women-managed enterprises is slightly higher in rural areas than in urban areas.

Table 2: Percentage Distribution of Enterprises by Gender of Owner in Rural and Urban Areas

AREA FEMALE MALE Rural 15.27 84.73 Urban 12.45 87.55 All 13.72 86.28

Source: MSME Annual Report 2011-12, Ministry of MSME, Government of India

Percentage distribution of enterprises by gender of owner and sector

Dominance of males in ownership was prevailing in each of the three segments of MSME sector. Most of the women enterprises are Micro Enterprises with 14 per cent share in total share of women enterprises. In Small and Medium segment, it is only 5 per cent and 4 per cent, respectively (Figure 3).

Figure 3: Percentage Distribution of Enterprises by Gender of Owner and Sector

Source: MSME Annual Report 2011-12, Ministry of MSME, Government of India

State-wise Entrepreneurship Profile

In India the number of enterprises owned by males was 13, 49,320 compared to 2, 14,650 owned by females, which shows that female only owned about 13.72 per cent of enterprises in the country. With regards geographical spread of female entrepreneurship across India, Tamil Nadu has highest numbers

14.19% 5.06% 4.21%

85.81% 94.94% 95.79%

0

20

40

60

80

100

120

Micro Small Medium

Female

Male

20

followed by Kerala, Karnataka and Gujarat. The lowest number of women entrepreneurs, are found in Chandigadh, Dadra & Nagar Haveli and Arunachal Pradesh.

State-wise and Area-wise Entrepreneurship Profile in Percentage

Prior to 2006, MSME sector was known as Small Scale Industries Sector (SSI) and according to 2001-02 (3rd Census of SSI units), the number of units registered with SSI was 13.74 lakhs of which women enterprises had a share of 10 per cent. The eastern states of India such as Manipur, Tripura, Meghalaya, Assam have higher percentage of women enterprises out of the total number of enterprises in India, followed by southern parts of India – Kerala, Tamil Nadu, Karnataka, Pondicherry. It is observed that there are marginally higher percentages of women entrepreneurs in rural areas (15.27 per cent) than in urban areas (12.45 per cent).

Type of enterprise vs. entrepreneurship profile

Out of total female enterprises (2,14,650), almost 98 per cent (2,10,660) are Micro Enterprises, 1.80 per cent are Small and only 0.05 per cent are Medium enterprises. Thus, the trend is established that in India, the majority women are in micro enterprises (where the investment is less than INR 25 lakhs in manufacturing industry and less than INR 10 lakhs in service industry). An insignificant number of women are in medium and small-scale enterprises.

Nature of activity vs. entrepreneurship profile

Majority of women enterprises are in manufacturing sector (50.4 per cent) compared to 70 per cent male enterprises in the manufacturing sector. Service enterprises account for almost 40.9 per cent of female enterprises, as compared with 12 per cent of male enterprises. The same pattern is depicted in rural and urban areas.

Type of organization vs. entrepreneurship profile

Almost 90 per cent of enterprises are under proprietorship or Hindu Undivided Family i.e. 1408760 from 1,563,970 – total MSMEs. Out of 1,408,760 under Proprietorship or HUF, 13 per cent (184700) are owned by women, against 87 per cent (1,224,060) owned by men. Women largely prefer being proprietors in business. Women show negligible interest as compared to men in partnerships or private companies.

Credit accounts for all scheduled commercial banks in India

As per Statistics on Women in India (2010), the control over economic resources is a measure of women’s economic independence. The share of women holding credit bank accounts is significantly low, only 11.72 per cent of total credit accounts are owned by women. This shows that women are not having sufficient access to credit support throughout the country.

Based on the secondary data findings it can be concluded that: - India is a country with vast urban and rural divide. Rural India has a higher percentage of

women enterprises compared to Urban India. - It is to be noted that according to the MSME Annual Report 2011-12, 13.72 per cent of

enterprises are managed by women, compared with 86.28 per cent enterprises managed by men.

- As per the comparative trends within the states of India, Tamil Nadu has the highest number of enterprises followed by Kerala, Karnataka and Gujarat.

- Out of total female enterprises, 98 per cent are Micro Enterprises, 1.80 per cent are small and only 0.05 per cent are Medium Enterprises.

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Fifty per cent of women enterprises are in the manufacturing sector, compared to 70 per cent male enterprises (

Figure 4 and 5)

Figure 4: Women Enterprises’ Sector Figure 5: Male Enterprises’ Sector

Source: Fourth All India Census of MSME 2006-07, Ministry of MSME

- The vast majority of women prefer proprietorship in their businesses. - The low share of 11.72 per cent of women credit accounts reflects deficiency of adequate

credit access to women in the country. - With regards to policy, women’s entrepreneurship development has received scant attention. - There has been a scattered approach to policy making in the area of women’s

entrepreneurship ; it appears under various heads such as the food processing sector, the handloom sector, the handicraft sector and other cottage industries. BDS Providers undertake a variety of activities such as Credit, Business skills Training, Technical Training, Marketing Services, and Legal assistance. In view of support to women entrepreneurs, they can be classified as follows:

50% 41%

9%

Women Enterprises' Sector

Manufacturing

Services

Repairing &Maintenance

70%

13%

17%

Male Enterprises' Sector

Manufacturing

Services

Repairing &Maintenance

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Figure 6: Classification of BDS Provider

Revenue collection Government sector Main stream Community based Financial organization Institution

Registration Few non-government al Federation (women) Sector Women association Various laws Promoting training Chamber of and taxes & technology commerce - -

- Government and non-governmental bodies have paid increasing attention to women‘s economic contribution through self-employment and industrial ventures. However, it remains that women’s empowerment has been a policy objective of the Government of India since independence with a gradual shift from a welfare to a development, and empowerment approach.

Primary Data (Survey of women entrepreneurs) This study aims to examine differences among various crucial factors which relate to women entrepreneurial opportunities at large. Awakening issues have been identified through a small-scale primary survey of women entrepreneurs in India.

Key Findings

Findings are discussed and presented below, and review the tangible and non-tangible impacts on women entrepreneurs of a range of sociocultural, policy/legal, market and capacity-building related factors.

- Women as entrepreneurs - Support to women entrepreneurs - Entrepreneurial motivation and characteristics - Profile of women-led enterprises - Women entrepreneurs and family lifestyle

Institutions Classified

Regulatory Promotional Credit Representational

All Gender Neutral

Gender Neutral & Specific

Few schemes for women

Gender Neutral & specific

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Women as Entrepreneurs

- Though women-managed MSMEs in India only account for 13.72 per cent of total registered MSMEs, they have significantly contributed to the growth of the national economy.

- The majority (65 per cent) of women entrepreneurs within our sample belonged to the age group 30 to 49 years, while 30 per cent of them were above 50 years of age. Most women entrepreneurs surveyed were from urban areas. Some 84 per cent of them were married.

- A prior business background in the family did not appear necessary for women to start/run a business successfully.

- Most women business owners were previously either house wives. They were graduates or postgraduates.

- Women respondents appeared to have little concern for making profit and had often chosen business to forge and assert their own identity. The respondents also tend to use entrepreneurship as a tool for fulfilling career aspirations. Some 51 per cent of women devoted 25-50 hrs. per week to their business.

- The reasons frequently cited for starting a business were for the sense of self-achievement, for economic independence, for profit making aspirations and to support their family ()

- Figure 7: Factors influencing business start-up )

Figure 7: Factors influencing business start-up

Source: Author’s calculation based on survey results

Some 57 per cent of women entrepreneurs had work experience of 10 years and over, including both previous work experience and entrepreneurial activities.

- Most respondents had started their business within small premises and later moved on to larger places, as demand for their products grew. Over 70 percent of entrepreneurs found the first 3 years of activity particularly challenging.

8

18

13

1

41

16

2

27

46

4

21

0 5 10 15 20 25 30 35 40 45 50

To continue in the family occupationSupplement the family income

Financial needTo pass time

Economic independenceImprove social/familial status

No employmentProfit-making aspirations

Sense of self achievementEncouragement from friendsEncouragement from family

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- Women entrepreneurs generally depend on both demand side (institutional framework, policy and market sources) and supply side factors (the availability of suitable individuals to occupy women entrepreneurial roles).

- Women entrepreneurs involved in the survey stated lacking awareness and information about available loans, various funding agencies, procedure regarding certification, and government welfare programmes and schemes.

- Women entrepreneurs’ networks represented major sources of information about women’s entrepreneurship for those surveyed and such networks are increasingly recognized as very valuable tools for further development in this field and for business promotion.

Support to women entrepreneurs

- Some 41 per cent of respondents sought support from their husbands in the form of moral and financial support. However, 13 per cent stated having not received anyone’s advice and only 8 per cent sought help from business mentors. Institutional support was provided to only 5 per cent of respondents (Figure 8).

Figure 8: Help sought for starting enterprise

-

Source: Author’s calculation based on survey results

- Women entrepreneurs faced many challenges, specifically in marketing their products. - An overwhelming majority of respondents (92 per cent) expressed the need to improve

their market knowledge and skills in various areas of marketing. Most women did not take loans because of adequate personal funds. Some 44 per cent had made financial arrangements on their own, 28 per cent needed bank support and others.

- Women entrepreneurs stated being unaware of broad support provided by Government, information about changes and relaxations in Government policies, various upliftment schemes and grants available to them. Very few women’s programmes appeared to have done well and such programmes were mostly very small and operating at the level of districts or states, being also confined to a few subsectors or functional activities. The Government sponsored development activities have benefited only a small section of women. Out of them, 38 per cent found the process

41% 6% 6% 6%

8% 2%

6% 5%

13%

0 5 10 15 20 25 30

HusbandFather

MotherFamily

A business mentorMother-in-law

Husband & fatherAgency or institution

Did not take advise/consultation

25

of accessing Government Schemes neither easy nor difficult (Figure 9), 38 per cent either difficult or very difficult.

- Many of the challenges and constraints women heading micro and small enterprises face cannot be addressed with a single intervention or within a single sector. Greater attention needs to be paid to the development of the sector in general to promote women-owned micro and small enterprises and ensure women's economic empowerment through entrepreneurship.

Figure 9: Problems faced in accessing Government Schemes

Source: Author’s calculation based on survey results

Entrepreneurial motivation and characteristics - Based on primary data, it was found that characteristics related to successful

entrepreneurship were similar for both men and women, for example need for achievement, need for control and affiliation, self-fulfilment and need for independence, self-confidence, and problem-solving etc.

- Despite 87 per cent of women not having previous business experience, they had successfully ventured into entrepreneurship. Some 63 per cent of women took six months to one year to establish their operations.

- Nearly 55 per cent had undergone business/entrepreneurship and leadership training, whereas 46 per cent women had initiated their enterprise without any prior specialized training. Respondents held positive attitude towards sharing ownership to encourage growth.

- Majority of women did not expect special favours as women. They sought help especially from their husbands/professionals. The cultural pull of traditional processes, of rigidly defined roles and internalized norms and expectations for women is very strong in India.

- Women in business face many challenges and forms of inequity which are manifested in sociocultural norms. Over 50 per cent of respondents face barriers in the operational side of running a business (for example access to finance, market and input to raw material), while 23 per cent reported additional barriers in terms of access to information and ICT (Figure 10).

0

20

40

Very Easy Easy Neither Easyor Difficult

Difficult Very Difficult

0%

23%

38%

23% 15%

Problems faced in accessing Government Schemes

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Figure 10: Additional Barriers for Women Entrepreneurs as Compared with Male Entrepreneurs

Source: Author’s calculation based on survey results

Profile of women enterprises

- Manufacturing and service were the most common sectors of activity for women entrepreneurs, 48 per cent responded working in the service sector, 44 per cent in manufacturing.

- Some 44 per cent of respondents had opted for producing industrial and technical products, indicating that women entrepreneurs are shifting from traditional to non-traditional business. Some 40 per cent of women had selected businesses like IT (Information Technology), ICT (Information Communication and Technology), Education training, etc.

- Over 90 per cent of women had created their own enterprise, 6 per cent had inherited it, while 2 per cent had purchased their business. Nearly half of respondents (46 per cent) had proprietorship firms. Out of 63 entrepreneurs, 23 were doing business at international levels (over 36 per cent).

- Over 80 per cent of respondents had full-time employees, 42 per cent also had part time staff. - Some 16 per cent had a turnover of up to Rs. 10 lakhs and 14 per cent women between Rs. 10

lakhs and 25 lakhs. Some 21 per cent had a turnover between Rs. 25 lakhs to 2 crores and only 3 per cent Rs. 10 crores and above.

- All women were using ICT, particularly for communication and networking (51), followed by some using sourcing information (37), inventory control (23), accounting and financial (34) marketing of products (33).

Women entrepreneurs and family lifestyle

- Women entrepreneurs continued to take care of their homes and family even though they are involved in entrepreneurial activities. Most women pursued their active participation in

21%

55%

23%

1%

No difference

Access to markets, financeand raw materials

Access to information andknowledge such as ICT

Other includingdiscrimination in perceptionof women's capability forentrepreneurship

27

household activities and fulfilled their responsibilities. However 65 per cent mentioned that combining work and family life was a real challenge.

- The Indian society is traditional and women are brought up in an environment where family is the foremost priority. From the case studies, collected based on in-depth interviews, it was found that being married and having a family was an important source of support for women entrepreneurs.

- Behind most successful women entrepreneurs, there was a strong family support. - Many women with young children did experience guilt feelings at times and coping with home

and family responsibilities appeared to present some difficulties. An important factor was that in the majority of cases, the husbands supported their wives’ entrepreneurial endeavour and the families benefited from child-care at home.

Based on the above findings, one can conclude that women’s participation in the field of entrepreneurship is gaining increased acceptance, albeit at a slow pace, while efforts are ongoing to enhance women’s involvement and achievement in the field.

Recommendations for Creating an Enabling Environment for Women’s Entrepreneurship

In India, the potential for supporting and developing women’s entrepreneurship is immense and women’s increased participation in economic activities is a national priority. However, women entrepreneurs are still not yet widely supported and accepted. The efforts to develop women need to be substantiated and strengthened. To lead women towards Entrepreneurship by creating an enabling environment, a series of recommendations are provided here, including those that emerged from the National Consultation on Creating an Enabling Environment for Women’s Entrepreneurship under the broad headings of:

a) Role of Government b) Role of BDS Providers c) Role of Supporting Organizations d) Access to Finance e) Access to Market f) Access to Infrastructure and social service g) Access to Technology h) Other measures to create enabling environment

Role of Government: Overall Policy Direction

- Several policy initiatives have been taken by the government in terms of regulatory, promotional, credit and representational policies for entrepreneurs at large but very few such schemes are specifically targeting women entrepreneurs. The Government of India has enacted the National Policy for the Empowerment of Women, 2001. As a result, various schemes and plans for the encouragement of women entrepreneurs have been launched but their execution at different stages has been lagging and the impact on ground needs to be closely assessed/monitored.

- Policies for women’s entrepreneurship should follow a comprehensive approach rather than be piecemeal. They should encourage subsector clusters by providing infrastructure faciliti es and services, such as training and banking to MSMEs. The Government needs to ensure the

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availability of credit for fixed assets and working capital, focusing on timeliness and adequacy in a gender-sensitive manner.

- Policies to facilitate income tax rebates and tax reliefs to women entrepreneurs can be introduced. Income tax rates should be reduced by 2 per cent for women.

Evaluation and Up Gradation of Policies

- There is a need to periodically evaluate the impact of MSME-related policies on the success of women-owned businesses and the extent to which such businesses take advantage of these policies. Good practices should be disseminated and shared broadly. Women entrepreneurs should extensively make use of the various schemes provided by the Government.

- Suggestions should be given to the national mission for entrepreneurship to ensure it is gender-sensitive.

- Provision of amenities: It is desirable to establish amenities for women entrepreneurs in industrial areas, such facilities should be characterized by easy mobility and proximity to residential areas with regular bus service, child-care facilities, etc.

Assistance and awareness creation

- Central and State governments should assist women entrepreneurs to participate in international, national and local trade fairs, exhibitions and conferences. Such activities should be organized regularly. Incentives to women for entry in MSME sector as entrepreneurs should be offered.

- Attempts by various NGO's and GO’s to spread information about policies, plans and strategies on the development of women in the field of industry, trade and commerce are playing a crucial role and should be supported.

Procedural simplification

- The procedures and formalities should be simplified for registration of business, financia l and legal assistance, subsidies, concessions, relief etc, from different government and non-governmental departments.

Role of the state governments

- State governments should ensure the adequate availability of trained workers; upgrade the skills of those already in the MSME sector, and upgrade products and processes, in line with changing demand patterns, so that women entrepreneurs can keep abreast of world standards of quality and productivity. Transfer of technology from the research institutes to the entrepreneurs should be ensured. Commercializing local innovation would be more appropriate for women entrepreneurs.

- State government should create “one-stop shops” for Government services/schemes/ programs for women entrepreneurs.

Role of BDS Providers Women in business should be offered soft loans and subsidies. Financial institutions should provide more working capital assistance to women-headed MSMEs.

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BDS Providers should make provision of micro credit system for women-led enterprises at the local level. The weaker section could raise funds through various schemes and incentives provided by the government to develop entrepreneurs in the state. (Such as, Prime ministers RozgarYojana, The Khadi and Rural village industries scheme, etc.)

All-India forums for women entrepreneurs should be established to discuss the issues and, grievances, women face in their businesses. Such forums should enact in giving suitable decisions in favour of women entrepreneurs and take a strong stand against any policy or measure that obstruct women’s economic empowerment and women’s entrepreneurship.

Awareness for women business development at all levels i.e., at government, BDS support and at entrepreneurial level, is lacking. Efforts are to be made to supplement existing network to improve access of women and to reduce barriers to their entry into business.

Role of Supporting Organizations

- There is a need for greater transparency and renewed efforts to increase awareness of existing regulations, and support mechanisms. Among other means, this could be achieved by publishing various women MSMEs laws and rules in local languages and by allowing the sale of such booklets and related applications. Periodic open forums of various regulatory departments such as excise, license, registrar, industrial schemes, tax departments, and directorate of industries should be widely disseminated among women entrepreneurs to create conducive environment.

- Training institutions should look ahead and provide training for their staff, update their curricula, and facilities in line with the times and to better meet pressing and evolving demands.

- Subsector-specific support should be created at district level for women entrepreneurs. Such mechanism should be autonomous and work independently of the government, with focused strategy of intervention, after identifying the key constraints for a specific subsector.

- It is suggested that NABARD and SIDBI take the initiative to draw the attention of the operating managements of the banks to create a potentially growing and profitable business segment. To overcome the technical deficiency at the branch level, the lead bank office in the district should establish a women cell to provide specialized assistance to all the branches.

Access to Finance

- Banks and financial institutions offer excellent financial schemes for women entrepreneurs but there is a lack of wider awareness among women about such schemes. A re-evaluation of the way women business clients are treated might alleviate many gender -related problems experienced by women.

- There is a dire need to have large number of awareness workshops/camps in different centres to introduce financial schemes available to women and to formulate a strategy to avoid discrimination, especially in small centres.

- Banks should have collateral-free lending, set quotas to women entrepreneurs for lending, as well as guarantee scheme for zero-collateral lending. Safe lending should be replaced by priority lending for women. Consortia (group) lending for women should be made available.

- Banks should keep regular monitoring of women entrepreneurs’ loans and helping women entrepreneurs to develop project. Banks having considerable lending to women should be offered incentives.

- Every girl should have a bank account; it should be made mandatory because it will make them eligible for bank loans in the future. Women business loans should have lower interest rates. International capital should be made available, and regulations need to be simplified

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Access to Market

- Special efforts should be made to facilitate unmediated access for women to investments in human capital, to the factors of production, to productive assets and productive markets.

- Marketing assistance should be developed by promoting linkages between women enterprises of various sizes, by way of legitimate subcontracting and where appropriate, franchising or other forms of inter-firm cooperation. Organizing women enterprises for export marketing should be encouraged through coordinated efforts, assisting in quality standards, and by providing information of foreign markets as well as by assisting them in overseas representation.

- Quota in government purchase with minimum percentage and margins in auctions to women should be given.

Access to Infrastructure and social service

- Implementation of infrastructure must be accompanied by policies that encourage women to engage in income-generating activities, including education, training and extra benefits such as child care facilities. Government can set some priorities for women entrepreneurs for allocation of industrial plots, sheds and basic infrastructure/amenities.

- Investments in infrastructure networks and education for women should be encouraged. Implementation of infrastructure must be accompanied by policies that encourage women to engage in entrepreneurial activities.

- Waiver on stamp duty and registration charges for Women to create their properties should be offered.

- Infrastructure advantages to women entrepreneurs should be promoted by both public and private sector in form of “special zones”. It would reduce her burden of developing her infrastructure.

Access to Technology

- The establishment of technology centres that provide assistance to women entrepreneurs is greatly needed. Universities and technical colleges should be given a greater role in the development and dissemination of technologies in conjunction with women enterprises. - To upgrade technologies in the women entrepreneurship development, credit should be made available on a preferential basis to women business units that want to modernize. The need exists for the adaptation of technology to local needs of women enterprises for appropriate research and for the dissemination of information.

Other measures to foster an enabling environment for women entrepreneurs: Removing socio cultural barriers

- Change in attitude: Societal change does not occur overnight; it is a gradual and slow process. But without this change the above-proposed subsidies and credit allocation, and other measures aimed towards women may not bring about much change.

- Initiation into professional work: Usually families provide financial and emotional support to sons for setting up a business or profession. But women should be convinced that their skills and knowledge, if utilized could provide them with profitable occupation.

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- Self-recognition: Women should recognize their own (psychological) needs and give their needs an expression. They must be motivated to be actively involved in entrepreneurial activities.

- Encouragement and motivation: Role models to encourage women to take up entrepreneurship should be created and social media/ media can project working women in a more positive way, showcasing such role models.

Training needs requirement

- The study provides a clear picture of the types of difficulties women entrepreneurs face at the conception, inception and operation stages of enterprise building. These difficulties could be solved if a package of need-based training covering product selection, market and investment information, training in management and behavioural skills and competencies could be developed and offered. Women intending to start business should be encouraged to participate in business-training courses.

- The professional education and training should start from school level. Women must be educated and trained to acquire the skills and knowledge in all the functional areas of business management.

- Vocational training should be provided by Government and private institutions, specifically for women, as an option to college education, especially in non-traditional areas. Vocational training for women needs to be associated with complementary programmes combining it with management and entrepreneurial training, which could further stimulate women’s interests in creating enterprises.

- An awareness programme should be conducted on a mass scale among women about the various areas to conduct business.

- Skill development should be done in women's polytechnics and industrial training institutes. Skills can be put to work in training-cum-production workshops.

- Women entrepreneurship should be promoted through education by introducing Entrepreneurship as a subject after 8th grade.

Role of NGOs

- Attempts by various NGOs to spread information about policies, plans, and strategies on the development of women in the field of industry, trade and commerce need to be supported and sustained. NGOs should participate actively in women entrepreneurship development programmes.

Role of FLO (FICCI Ladies Organization)

FLO can work in conjunction with the Government and other agencies to

- Establish a National Women Entrepreneurship Fund - Operate women entrepreneur guidance and training cells across its many chapters - Undertake gender-sensitization training for various agencies.

It needs to be stated that women in India represent about 49 per cent of the country’s total human resources. Unless women contribute more economically, the country cannot progress. Their participation and contribution to the overall development of the country should be facilitated.

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CASE STUDIES Case Study 1- Electronic Frontier: Smita Jani

Now, after fifteen years of earnest struggle, Smita has become the only woman entrepreneur in Gujarat to manufacture multimeters and ohm-meters. Her products have become a guarantee of safety and good quality. She plans to supply her products to many reputed industries directly and through dealers. Smita’s edge is possessing several appreciation certificates and awards for her commendable work from prestigious industrial institutions and media. In 2011, she was awarded Best Women Entrepreneur Award (Cash Rs. 1 lakh) by TAI, Bombay and she feels very proud about it.

Smita started her career as a worker in one of the electronics industries of Gujarat. Under her supervision came the unit where electrical multimeters were serviced. She worked there for a couple of years and gained experience in this field. Being an efficient worker, Smita could not satisfy her restless search for a challenge that stretched her interest of starting a service unit of multimeters. She resigned from the job and stepped out to do something on her own, in this same field. But Smita did not have the capacity to become self-employed because she was not clear about the prospects. She had lost her father, but her uncle motivated and supported her to go ahead.

This chain of difficulties did not lessen Smita’s welled-up enthusiasm. After persistent attempts and not very supportive banker, Smita lost hope of getting a loan and with her own resource of Rs. 27,000 managed to set up a unit in a rented premise in a busy commercial area. The place proved to be one of the advantages for Smita. She has 3 people working with her and she herself looks after technical work, purchase and dealing with clients. For her financial need she twice received micro credit loans from ICECD. She remembers that initially clients were not accepting her as Entrepreneur, especially since she was repairing and servicing electric motors, which is quite technical.

She adopts different techniques to deal with different clients and having learnt the tricks of the trade, she knows how much to charge from different customers. Her growth plans are also well-designed. She cashes on her contracts with big companies and clinches business from companies like Torrent Electricity Company, Ahmedabad, Electricity Company. The Chinese products in India market initially had poses challenges. But she continued with her good quality and service to clients and succeeded. She feels her products have the required market now and will have in future too.

Today, 50 year old Smita is a genial housewife, a grandmother, and a prosperous entrepreneur in the field of electronics. Her tailpiece advice to every prospective woman entrepreneur is “never let your low educational qualification dampen your enterprising inclination, for you too can succeed like me.” She says, “I am not bothered about government support and in facts feels that in order to succeed all women should face some difficulties so they mature. Her advice to women is “Be practical, ask for information, go to market and have confidence.”

She proudly says that my whole family is in business; son, husband and daughter-in-law. So she says, “when women become entrepreneur the whole family becomes entrepreneur”. Son has separate business of mobile training and repairing. She is a faculty and motivator to entrepreneurship programme to promote more and more women to venture into business.

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Case Study 2 - An Entrepreneur with a distinct attitude: Geetha Premkumar

Geetha Premkumar, had no business background whatsoever, before she made her debut as an entrepreneur in the field of UPS (Uninterrupted Power Supply) equipments. However, she had always harbored a secret desire to do something on her own.

Since her childhood, her parents have continuously encouraged and motivated her to do everything with complete attention and full involvement and to take responsibilities. This backing helped her to evolve as a successful entrepreneur. Similarly after her marriage, she always received support in managing her responsibilities at home through her in-laws while she kept working hard for her enterprise.

She started her first job as a teacher and later on took up jobs in the field of computer/IT. Having very limited money and knowledge, Entrepreneurship was the only option which also allowed her to simultaneously fulfill her household duties. The desire to do something on her own motivated her to look around and explore gaps in the industry. She found Power Supply as an increasing issue in major industries. She instantly took up the challenge to manufacture and supply products in that range. Thus were laid foundations of Vector Indojanix (P) Ltd, which is now a well expanded unit having annual turnover of Rs. 5 Crore (At Vector Indojanix (P) Ltd., they are offering different products in the categories of UPS, Stabilizers, APFC Panels, and Inverters).

However, no business can be set up without its share of problems and Geetha had to face financial constraints. She had to approach each and every bank for her finances as she had very limited capital initially. She ran from pillar to post without getting any favourable replies from them. At last, her constant efforts convinced them of her credentials as a good entrepreneur.

The business has proved to be a salutary experience for Geetha. After being a successful women entrepreneur, the perception and outlook of others have been changed towards her and she is being seen with great respect.

She believes that for a woman, the work and family goes side by side and that is why she feels herself equally responsible in both the planes and is more comfortable running her business nearer to her home. She has managed all her domestic responsibilities without any support of maids and at the same time she was the bread winner of a joint family. All these years, she has had tremendous courage and strength for she balanced her personal and professional life in an appreciative way.

She feels that the skills and knowledge should be imparted to the coming generation and her generosity has prompted her to train them on this path. Apart from being a Business Woman, she is also giving services as an Entrepreneur Counselor at many schools, colleges and institutions her goal is to take entrepreneurship at a next level by guiding and motivating them towards Entrepreneurship.

In her view, the Legal framework and Policy Environment for Women Entrepreneurs in India can be further improved. The Indian typicality still looks women entrepreneurs as an unwelcomed breed in the mass of dominated men entrepreneurs and there still persists gender discrimination. She thinks that there are many opportunities in India for women entrepreneurs but not many women are coming forward because they are not willing to compromise with themselves. Also, today’s generation is money minded and more comfortable in jobs than in business. They do not like to take challenges.

Geetha says that “It is a Social Service to give Employment to others and therefore more and more awareness and training programs are required to be conducted for women to be entrepreneurs. Her candid conviction and a piece of advice to all the women - “Work Constantly, Success will follow.”

Geetha’s entrepreneurial success testifies that any woman immaterial of her financial backups, if desires can start and run her own business provided, she employs her full potential, capabilities, willpower and strength in all the entrepreneurial activities. Geetha surely is a great inspiration to all

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those women who want to come forward and do something on their own as she never negotiated with her values and ethics even when she faced discrimination and unwelcomed gestures.

Case Study 3 - Weaving Success: Purnimadevi Ongbi Shrimati R.K. OngbiPurnima Devi wife of ShriR.K.Rebatinath Singh of SagolbandBijoygovinda, LairenjamLeirak, Imphal West, Manipur, India is a Proprietress of M/S.S.P.Embroidery Centre and was born on 1st February 1962.

Her story:

My father who was a carpenter and a part time manager (who manages local religious and customary ceremonial functions) died when I was very young, leaving my mother, two elder sisters, one elder brother and me. My mother who is the 2nd among three wives of my father was very neglected by my father. My illiterate poor mother’s difficulties in bringing up her children inspired me to start my enterprise. During rainy season when no jobs were available we were to starve and our father did not look after us ignited a challenge that women should be educationally and economically strong. Luckily my husband also supported my opinion and helped me in every field.

As soon as I finished my graduation in 1984, and due to my training from District Industries Centre (D.I.C.) in embroidery and also I stood 2nd in the training, I availed a good chance of being a beneficiary of government scheme – Prime Minister Rojgar Yojna 1995, and training in Entrepreneurship Development Programme (EDP) under the auspices of North Eastern Industrial Consultant Ltd. (NECON).

People became to be attracted to the finished products of the firm especially designed for marriage and decorative purposes. A work force of three artisans found it hard to supply the demand of the customers and I very much wanted to increase my work force, and in such a crucial moment NECON, sponsored a training for twenty trainees and I was given a free hand to select the trainees. I selected 20 (twenty) girls from my locality for the training who are poor and orphan. From among them I again selected 12 (twelve) girls who are more efficient, artistic and sincere to work with me.

It is not a customary to keep servants in a Manipuri home. All the members of the family have to do their own work. And thus the work at home always got distributed and also whenever I was occupied with family responsibilities, my husband and workers looked after the enterprise in my absence. In this way I run my enterprise without much difficulty.

There were only three leading competitors in my enterprise. I try to be at top of them by grooming my workers and building good infrastructure for working. I try to deliver timely, neat and clean with exotic designs.

I started running a hostel in the first floor of my house where about twenty of my trainees and workers from far places are kept at free of cost.

Me and my husband concentrated on our venture and tried to generate more employment through our firm. Our aim was to generate more entrepreneurs in our field. Today one can easily see sign boards of embroidery shops in the nook and corner of the state.

I availed the enviable chance of being a member of the Jury in the State Level YuvaKriti/ Exhibition organized by Nehru Yuva Kendra Sangathan (NYKS), Imphal. I was also selected as a trade expert for Embroidery in the Board of Examiners for conducting the All India Trade Test of Craftsmen (final) by the Labour Department, Govt. of Manipur. The unit received the prestigious “National Award 2009 “from Her Excellency, the President of India, Smt. PratibhaDevisinghPatil for Outstanding Entrepreneurship in MSMEs.

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I feel, Government policies should be circulated in all the departments so that entrepreneurs don’t have to go for unnecessary documents for example, embroidery units do not need Pollution No Objection Certificate. Likewise loans can be given without any collateral to the women entrepreneurs. Due to much paper work and delay in the sanctioning of loans entrepreneurs usually become nervous and cannot concentrate to their work and plan. Banks and financial institutions seldom understand that without loan from them entrepreneurs cannot grow. Working capitals should be provided at the minimum interest.

Handloom and Handicrafts enterprise is the most suited in the case of Manipur. There is very much scope and more women entrepreneurs are needed. Food & Fruit Industry has good future for women entrepreneurs. I am very happy if I can be an” Inspirer “to my all women friends.

Purnimadevi has been completely supported by her husband at all her stages of business, which if would not have been there, it could have been difficult for her to come this far. To run and continue a business smoothly, a married woman certainly needs a constant backup from her spouse. Also, there exist Government, MSME schemes and trainings for women entrepreneurs but unfortunately there is very little awareness and knowledge about these assistance schemes amongst women entrepreneurs in India.

Case Study 4 - Beautifully balancing Family and Entrepreneurship: Ashima Dang

Ashima Dang is satisfied to have arrived at a stage where she is balancing her work and family responsibilities, but she feels that there is a long way to go…

As a start of her career, Ashima took up a job in IT (Information Technology) industry. But soon she started realizing that even though working in an enterprise at a low profile, it became difficult to manage the family and work together. Her priority was family and work did become secondary. As usual being a woman, when her kids were at young age, she was looking at a business that would offer flexible timings and could be managed from home. Her job was taking a lot of time and hence she left it.

Bangalore is an IT hub and having an experience in IT industry, it was easy for her to select IT business. Her strong desires to balance work and family and to have Economic Independence at the same time persuade her to be an IT entrepreneur. She created her own proprietorship concern – New Avenues 4 years ago.

IT business was highly technical and did not involve regular entrepreneurial activities like production, finance, raw material etc. market management however was found as a big challenge due to constant updates and too much reliability on technology. Being a well experienced technical person, Ashima keeps herself update with various sorts of technical knowledge and information continuously. Since she is dealing with IT business her membership with business forums was a great opportunity for her to expand and keep informed with latest trends. Started at a slow pace, ‘New Avenues’ has in true sense taken to new and wider avenues at national and international level with Ashima’s constant efforts. With her seasoned multimedia solutions for kids and youngsters, Ashima is also assisting her husband in growing his garment business by online marketing through her IT expertise.

She says “Since I am technical person I took just 3 months to start operating my business but entry in the market was very difficult”. Ashima does not find her work in any way different than man’s enterprise. But she feels she could not get required support as men do in running their enterprises like business friendly policies, regulations, market, credit and financial support etc.

While dealing with her business she found women are not very supportive to other women. And our country is still a man’s world. Her advice to women entrepreneurs;; “Balancing family and work sometimes hurts your ego, self-respect. Set your priorities and let it be known to your family that you

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will never compromise on their needs. Somehow, when your family is secured, your work gets done faster in office too….”

Coming from a Punjabi family, Ashima fought through all the hindrances and set an example of performing double duties at home and at work. Even though women have dire need to be economically independent and being equal to men capability wise, Indian tradition conditions make them run small business from home to begin with so that family life does not get disturbed.

Case Study 5 - Horizons of Handicrafts: Poonam Gupta

Any entrepreneur who wishes to set up a business of Handicrafts has to be ready to face a stiff competition but for Poonam Gupta, this was not a discouraging factor. She opted for this business because of her vast experience in the fields of silver ware during her job and the basic technical skill required, which she already possessed.

Coming from a family of engineers, Poonam Gupta got inclined to start her enterprise – P.G. Designs Pvt. Ltd. when she realized that if her own crafted product line of silver ware can make wonders in the company where she is working, she can undoubtedly build her own enterprise and take the product to the next level with her creativity and vision.

Soon after completing her MBA, Poonam joined as a Management Trainee at a company which was dealing in luxury business. Poonam has always been keen to take challenges and meet up to them. At her workplace too, she took up the challenge to create a new product line of handmade silver ware which was although very innovative, had to be started from scratch. Poonam gave in all that which was required to take the product further and under her supervision, the product expanded and she reached up to the position of Director in the company in 22 years of her job.

Poonam was not satisfied and she still had many dreams for the growth of silverware handmade products and herself as an individual. Unfortunately she got stagnant at a stage as there always are limitations of working as an employee. Poonam found an alternative to chase her dreams and decided to leave and make her own fortune as an “Entrepreneur”.

She chose to stick to the same product of silver ware of which she gained all round knowledge during her job. And therefore, conception and inception into business were little easy and well directed for Poonam. She started with an investment of Rs. 50 lakhs with her husband’s help and support. Her family was not much sure about her success and survival into business initially but her slow and steady business development made them sure that Entrepreneurial Poonam would Prosper!

Most of her business challenges were in way of competition and she had to struggle through tough competition to make an identity of her enterprise in the fields of silverware product. Poonam made up her mind, accepted all the challenges and competitions and kept going.

Today, technicians from abroad and the best institutes in design work for Poonam and is steadily expanding her business at national and international levels. As the products are handmade and Poonam has acquired hands on experience, she seldom faces any challenges in labour and technical issues.

Poonam says “The skills of making handmade handicraft products are vanishing from the market and I want to train more and more people on these skills. I prefer to train young people, more often those, whose parents are working with me and who certainly would have inherited these skills in them.” Today, she employs more than 75 people at her firm.

Poonam has seen both the sides of work as an employee and as an employer. She enjoys more being an employer; an entrepreneur. Her thinking pattern has changed and she feels more energetic. Her work draws her great self-satisfaction as more and more customers are recognizing and admiring her work.

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For any individual be it a man or a woman, the most desired goal is to have his/her own identity and freedom. Poonam was successful both as an employee and as an employer but she feels more confident and accomplished being an entrepreneur. If a woman has complete confidence in the work and has the right knowledge, she will find identity and freedom.

Case Study 6 - Educator and Entrepreneur: Sandhya Sitaram Sandhya Sitaram, the proprietor of Zeal Education and consultant to schools, has established herself so firmly that her clients know for certain that her quality of work is matchless in the field of training and education.

It is a success story that has its roots in early computer era when the computers were very new and very few could execute computer training with full stream; undeniably Sandhya was one of them! The idea of teaching her daughter through fun filled computer based softwares was the nucleus around which the present astounding business of Sandhya took place.

Sandhya Sitaram, a gold medallist (M.Sc. in Zoology) from Bangalore University, taught Zoology in MES College, Bangalore before shifting to computers and later into training. She wanted to continue her studies and do Ph. D but it became difficult for her after her marriage to Dr. Sitaram as she moved to Ahmedabad after getting married.

At Ahmedabad, she started reading computer books and she explored her interest towards computer programming. Sandhya started teaching computers and later worked in various organizations as a faculty/corporate trainer and trained many students/professionals in programming languages like C, C++, Visual Basic and others.

Sandhya joined the ICECD (International Centre for Entrepreneurship and Career Development) training to get a better understanding of management aspects, and during the training, the various projects of her co-trainees influenced her. She got motivated by their business plans. The idea of starting a commercial venture took shape in her mind. The teacher in her started thinking and she decided to start an educational firm. She soon started running the Prosoft Children's Computer Club and became a pioneer in the use of computers in Education for children.

After few years, her husband joined her as a co-partner and Sandhya’s enterprise became a private limited concern. In spite of being a spouse of very famous Dr. Sitaram (a well-known mathematician) and running the enterprise together, Sandhya established her individual identity as a reputed Educator.

Sandhya has just initiated a sister concern – Ignite. Under that project, she has designed educational kits for schools. She is all set to expand this project and reach new heights of success.

She remarks “when women are settled in their family lives they must think of doing some constructive work instead of just being a homemaker.”

Sandhya already possessed the teaching skills in her but her success multiplied when she polished her entrepreneurial skills and gave a direction to her enterprise. Sandhya took up the challenge to create her own identity not for money but to give a reason to her life. Like Sandhya, there are many women who have many latent skills in them of which they are mostly unaware. What they require is self-introspection and reflection. There is no age bar for any woman to become an Entrepreneur. Women should look within and within and explore their potentials.

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Bibliography

Bhardwaj, Gurendra; Nath Parashar, Swati, Pandey, Babita and Puspamita Sahu ”Women Entrepreneurship in India: Opportunities and Challenges”

Bhati, Indira and Sharma, Anuradha, “Women Entrepreneurship: Investigation of Soothing and Impediment Factors

Goyal, Meenu and Parkash, Jai, September 2011). “Women Entrepreneurship in India: Problems and Prospects”, Sri Aurobindo College of Commerce and Management, LudhianaZENITH International Journal of Multidisciplinary Research Vol.1 Issue 5

Deshpande, Suni and Sethi, Sunita, (November 2009). "Women Entrepreneurship In India (Problems, Solutions & Future Prospects of Development)", International Research Journal) Vol. II, Issue-9-10

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Handy, Femida -University of Pennsylvania, Ranade , Bhagyashree - Marketing and Market Research Consultants, Kassam, Meenaz -American University of Sharjah, (Jun-07). "To profit or not to profit: Women entrepreneurs in India”, University of Pennsylvania Scholarly Commons Departmental Papers (SPP) School of Social Policy and Practice University of Pensylvania

ICECD and IDBI, (April 1990). “Performance Assessment of Indian Women Entrepreneurs”

ICECD, (October 1999). “Study of credit flow and its utilization by rural women in micro enterprises”

Kollan , Bharti; Parikh, Indira, (August 2005). “A Reflexion of Indian Women in Entrepreneurial World” IIM Ahmedabad

Kothari, Bhavesh (June 2009). Government Schemes for SMEs

Kumari, Savita, (June 2012). “Women Entrepreneurship in India”, International Indexed and Refered Research Journal

Kumbhar Arun and Kumbhar ,Dilip, (September 2011). “Problems and Prospects of Women Entrepreneurs in India”, Global Economic Research

Mazumdar, Indrani and Neetha N, (1993-94 TO 2009-10). Gender Dimensions-Employment Trends in India

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Ministry of MSME, (2006-2007). Fourth All India Census of MSME 2006-07

Ministry of MSME, (2012). MSME Annual Report 2011-2012, Govt. of India

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Paper by: Shah, Hina (Director), ICECD Presented at: Achieving Convergence for Empowerment of Women Western Regional Conference 23rd – 24th April 2012

Policies and Support Measures for Women MSMEs by Ministry of MSME

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Subrahmanian, Mu, “Women Entrepreneurs: The Emerging Economic Force”, Jaya Engineering College, Thirurninravur, Chennai – Tamil Nadu

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ANNEXURE-1: RESEARCH TOOLS

a. Questionnaire for individual Women Entrepreneurs b. Institutional Questionnaire c. In-depth interviews for Case Studies

a. Questionnaire for individual Women Entrepreneurs

Survey on Women’s Entrepreneurship in India

1. The following questions are about your enterprise and how you came to be an entrepreneur.

1.1 When did you start your enterprise? (____ dd/____ mm/______ yy). 1.2 What is the sector of your enterprise?(Please tick as appropriate).

Sectors Tick(л) Product/Service Manufacturing Services Information, communication and technology Repair and maintenance Handicrafts Other, please specify

1.3 What is the type of enterprise? (Please tick as appropriate). Proprietorship Partnership Pvt. Limited Limited Other, please

specify, Registered (Y/N)

1.4 How did you come to be an entrepreneur? Did you… Create the enterprise Purchase the enterprise Inherit the enterprise Other, please specify

1.5 What was the main reason behind your decision to start this enterprise? (Please tick the most

appropriate answer). There was a gap in the market

Previous experience or knowledge

Availability of raw material

Other, please specify

1.6 Did you receive any training related to business / entrepreneurship? (Please tick as appropriate). Yes No

1.6.1 If yes, what type of training did you receive?(Please tick all that apply to you). Entrepreneurship development

Technology upgrade

Communications Management and leadership

Other, please specify

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1.7 What is your age?(Please tick the appropriate answer for you).

24 years and below 40 to 49 years

25 to 29 years 50 years and above

30 to 39 years

1.8 What is your relationship status? (Please tick as appropriate). Single De facto

Married Widow

1.9 Do you have children? (Please tick as appropriate).

Yes No If yes, how many?

1.10 Do you have support at home? e.g. maids, child care. Please tick the appropriate answer for

you. Yes No

1.11 What is your highest educational qualification?(Please tick as appropriate answer and indicate

how many years of schooling in total). Postgraduate Graduation Higher

secondary

Primary

school

Other, please

specify

Total number

of years

schooling

1.12 What was your occupation before you became an entrepreneur? (Please tick as appropriate) Employed in a full time position

Employed in a part time position

Looking for work

Homemaker

Studying

Other, please specify

1.13 How many years paid work experience do you have, including your time as an entrepreneur?

(Please tick as appropriate). Less than one year

One to two years

Two to five years

Five to ten years

Ten years or more

1.14 Had you owned an enterprise previously? If so, what is the current situation of that enterprise? (Please tick as appropriate). I have never owned an enterprise

previously

Sold

Still operating

Went into liquidation

I would prefer not to say

Other, please specify

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If you would like to provide your personal details we would be most grateful. You may do so voluntarily. Name: _____________________________________________________________________________ Name of enterprise:____________________________________________________________________ Address: _____________________________City: ______________________State: ________________ Phone number: _____________________ Email: ____________________________________ Would you mind being contacted for further discussions. Yes / No

2. REASONS /MOTIVATION - for becoming an entrepreneur and the support you received, if any. 2.1 Why did you start your enterprise? (Tick all of the answers that apply to you). To continue in the family occupation

Supplement the family income

Financial need

To pass time

Waiting for marriage

Economic independence

Improve social/familial status

Lack of other employment opportunities

Profit-making aspirations

Sense of self achievement

My friends encouraged me to

My family encouraged me to

Other, please specify

2.2 When you became an entrepreneur, did you consult anyone to help start the enterprise? (Please tick all of the answers that apply to you). Husband

Father

Mother

Other female family member, please specify

Other male family member, please specify

A business mentor

A community mentor

Agency or institution, please specify

Other, please specify

2.3 Does this person continue to mentor you? (Please tick as appropriate).

Yes No No, but someone else done. Please specify

1. CHALLENGES - you faced when you started your enterprise and became an entrepreneur.

3.1 When you began your enterprise, what institutional and business related challenges did you face? (Please tick all of the answers that apply to you). Market conditions

Legal / regulatory conditions

Financial related difficulties

Means of production

Challenges with the raw material

Labour

Other, please specify

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3.2 When you began your enterprise, what personal challenges did you face?(Please tick all of the answers that apply to you). Lack of self confidence Limited networks and industry contacts Lack of information available Combining work and family life Challenging government institutions and other officials

Other, please specify

2. FINANCE 4.1 Do you have financing arrangements with banks or other financial institutions?

Yes No I do not know 4.1.1If you answered ‘no’ what are the reasons for not seeking financing support from financial institutions? After answering this question, please go to question 4.5. Please tick the box of the most appropriate answer. Adequate personal funds Family resources Personal savings Difficulty in obtaining credit Complicated procedures to obtain credit Other, please specify 4.1.2 If you answered ‘yes’ to question 4.1, what type of financing arrangements do you have? Please tick all that apply to you.

4.2 What institution is your financial arrangement with?

4.3 How did you learn about these sources of credit? (Please tick all that apply to you). Family member Friend Local leader Bank officer The Internet Other, please specify 4.4 Did you encounter any problems when seeking credit, regardless of whether you currently have a credit arrangement with an institution? Procedural Sanction Disbursement Personal Attitude/behaviour of officers Documentation Discrimination Guarantor related Other, please specify

Working capital financing Fixed asset financing Other forms of credit and banking support, please specify

Non-governmental organization (NGO) Government agency Venture capital Bank Other, please specify

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4.5 Have you been aware of, applied for, or used incentive schemes (e.g. grants, loans) provided by the Government? Please tick the appropriate answer. If no, please go to question 4.6. If Yes, please specify the title of the grant/loan.

Yes No If yes, please specify

4.5.1 If yes, how did you come to know about these schemes?(Please tick the most appropriate answer).

Family member Friend Local leader Government Officer

The Internet Other, please specify

4.5.2 If yes, was the application process easy?(Please tick the most appropriate answer).

Very easy Easy Neither easy or difficult

Difficult Very difficult

4.5.3 Would you recommend for other women entrepreneurs to use these facilities? (Please tick the most appropriate answer).

Yes No 4.6 Approximately, what is your annual revenue? (please indicate in rupees)

_____________2009-10 ______________2010-11 _______________2011-12

4.7 If your enterprise is making a profit, how long did this take to happen? ________________ Months ________________ Years

5 The following questions are about your enterprises operations.

5. 1 Approximately how long did it take for the business to start operating since the conceptualization stage? ________________ Months ________________ Years 5.2 Are you the main decision maker in the enterprise?

Yes No 5.3 How many employees do you have? ________________ Full Time Females ________________ Full Time Males ________________ Part Time Females ________________ Part Time Males 5.4 Which stage of operating the enterprise did you find the most challenging? (Please tick the box with the most appropriate answer). Upon market entry Between one to

three years Between three to five years

Beyond five years to present

Other, please specify

5.5 How many hours per week do you work in the business? _______________Hours 5.6 Where do you sell your products / services and to whom? (Please tick the relevant answers for

your enterprise).

Local City State National International

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5.7 Does the business operate in other countries? (Please tick the appropriate answer, if yes please specify the country/countries).

Yes No If yes, please specify 5.8 What challenges do you face with production management or providing your services? (Please tick all of the boxes that apply to your enterprise). Raw material related Labour related Electricity Water Machinery Transport Quality control Marketing Pricing Other, please specify

5.9 What areas could you improve your market knowledge?(Please tick all of the boxes that apply to your enterprise). Pricing Quality control Segmentation of the market Selling Cash/credit market Import/export Marketing strategy Other, please specify 5.10 Accounting records for your enterprise? (Please tick the appropriate answer). Manual accounting Computerised

accounting I do not maintain accounts

I do not know

5.11 Who maintains the accounts of your enterprise? Myself Husband Accounts clerk Other, please specify 5.12Do you use Information Communications and Technology (ICT) as a main tool in any of the following business functions? (Please tick all of the boxes that apply to your enterprise). Means of communication and networking Sourcing information about the business Inventory control Marketing of products/services Accounting and financial analysis/recordkeeping

Other, please specify

6 The following questions are about you as a woman entrepreneur

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6.1 Are you a member of informal/formal business networks, associations, cooperatives? (Please tick the appropriate answer).

Yes No If yes, please specify

6.2 In your opinion, do women entrepreneurs face different challenges from their male counterparts? (Please tick all of the boxes that apply to you). No difference Access to markets Access to finance Access to information Access to ICT knowledge Access to input market (labour, raw material)

Other, please specify 6.3 Do you see many entrepreneurial opportunities for women in India?(Please tick all of the boxes that apply to you).

Yes No Only for small business

Only for some sectors

6.4 In your opinion, is the current policy, legal and regulatory environment supportive of women entrepreneurs in India? (Please tick all of the boxes that apply to you).

Yes No If no, briefly explain

b. Institutional Questionnaire

1. Questions to Promotional Institutions: 1.1 Specific concession for women entrepreneurs? its utilization and impact 1.2 What credit linkage support to women entrepreneurs? utilization and impact 1.3 What inputs and services for growth of women entrepreneurs? Impact 1.4 What technology upgradation for women entrepreneur’s products, process

and productivity improvement? utilization and impact 1.5 What basic facilities for production to women entrepreneurs? utilization and

impact 1.6 Skill upgradation programme for women entrepreneurs? 1.7 Marketing support, BDS for women entrepreneurs?

¾ Promotional institutions approached:

MSME Development Institute, India – MSMEDI National Mission for Empowerment of women – NMEW Khadi and Village Industries Commission – KVIC Gender Resource Centre – GRC District Industries Centre – DIC Department of Employment and Training Ministry of Industries, Ministry Women and Child Development Development Support Centre – DSC

viii

NGOs Chamber of Commerce Women’s associations like FICCI, AWAKE, etc.

2. Questions to Credit Institutions:

2.1 Accessibility of credit under schemes which otherwise would not have been possible for women entrepreneurs? Utilization and Impact

2.2 Any concessional credit to women entrepreneurs? Utilization and Impact 2.3 Specific credit requirements for women entrepreneurs. 2.4 Focused approach for any specialized subͲsectors/women entrepreneurs?

Utilization and Impact

¾ Credit institutions approached: Small Industries Development Bank of India – SIDBI National Bank for Agriculture and Rural Development – NABARD IDBI Bank Ltd. Public Sector Banks Private Sector Banks CoͲoperative Banks International Finance Corporation – IFC EXIM Bank Gujarat Venture Finance Ltd. – GVFL Angle Investors

3. Questions to Regulatory Institutions:

3.1 New initiatives for women entrepreneurs? 3.2 Help in getting land, electricity, water, bank loan to women units? 3.3 Legal framework and policies for women entrepreneurs?

¾ Regulatory institutions approached: Directorate of Industries Registrar of Cooperative/Companies District Industries Centre Tax Directorates Excise Departments Labour Welfare Departments Local Authorities Ministries of MSME many others

4. Questions to Representational Institutions:

4.1 Ensuring reach of concessional credit and inputs to women entrepreneurs? Utilization and Impact.

4.2 Provide collective bargaining for better benefits to women entrepreneurs 4.3 How social network of your organization is useful for women entrepreneurs? 4.4 Remarks for policies and legal framework in India for women entrepreneurs?

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¾ Representational institutions approached: Confederation of Indian Industry – CII Gujarat Chamber of Commerce – Business Women Wing FICCI LO – Federation of Indian Chamber of Commerce and Industry Ladies

Organization Association of Women Entrepreneurs of Karnataka – AWAKE Association of Lady Entrepreneurs in Andhra Pradesh – ALEAP Confederation of Women Entrepreneurs – COWE Federation of Indian Women Entrepreneurs – FIWE Ladies wing – Indian Merchant’s Chamber National Alliance of Women – NAWO TIE Stree Shakti Working Women Forum – WWF Consortium of Women Entrepreneurs of India – CWEI Women’s India Trust – WIT EWIT – Empowering Women in IT Ahmedabad Management Association – AMA

c. The Behavioural Event Interview (BEI)In Depth interview for Case Studies

1. Background on the Business a. Products and service b. How long the entrepreneur has owned the business c. Sales volume in the last year d. Changes in sales volume over past years e. Earning in the last year (money left after expenses and cost of goods sold) f. Changes in earnings in the past 3 years g. Changes in products or services over past 3 years h. Location (s) of business offices, shops, plants i. Major equipment owned or leased by business j. Number of employees and their jobs k. Sources of financing

2. Personal Background of the Entrepreneur

a. Education b. Work history c. Other experience relevant to present business d. Any business started previously and how successful they were e. Father’s and mother’s occupations f. Other family members who own businesses

3. Entrepreneur’s Regular Activities in the Business

a. Activities during a typical week (probe for moderate detail) b. Other regular activities related to the business c. Hours worked during a typical week, and whether these hours are more or fewer

than the hours worked as an employee in previous jobs

4. How the entrepreneur Got Started in This Business a. Initial thoughts about going into the business

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b. What the entrepreneur did to start the business (complete sequence of actions, including any problems encountered and how they were dealt with)

5. Specific Situations Encountered While Running the Business a. Tell me how did you feel and worked when you established your business?

Please give me details of: - Your support and problems at home to see you in different role - Your role in market / as an entrepreneur - Your role as a woman - How have you balanced your role as a Mother / Wife and Entrepreneur?

b. How has cultural and social environments affected your decision to become an entrepreneur?

c. Any financial crisis in world (around 2009) affected your business and in what way? - How did you respond to the crisis?

d. From your experience, please give suggestions how policy, legal and regulatory environments can better facilitate the entry, survival and growth of businesses owned by women entrepreneurs. (Please provide details.)

e. What is the impact of engaging in income-generating activities on your social life f. What changes you have observed in your own thinking and behaviour after the

business? (This can be asked to some of the other members of the family or community also)

g. How do you see yourself after starting the Enterprise: (Can probe for major changes in life?)

6. Entrepreneur’s View of the Personal Characteristics Needed for Effectiveness a. What are your goals for the business over the next three to five years? b. Suggestions

- How policy, legal and regulatory environments can better facilitate the entry, survival and growth of businesses owned by women entrepreneurs.

- For other Woman Entrepreneurs success - New opportunities for Women, you can suggest - What is your suggestion for smooth flow of credit / loan through different

lending institutions / agencies to the rural women who want to start micro enterprise?

- What suggestion you would like to make for policies of Woman entrepreneur? - Can you name any professional networking or capacity building program which

might be relevant for other women entrepreneurs. - Any advice to women?

7. Closing

a. Thanks for participating b. Questions from the entrepreneur

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ANNEXURE 2: LIST OF TABLES

a. Key National Trends b. Analysis of Policies, Legal Framework and BDS Providers c. Primary Data (Survey of Women Entrepreneurs)

a. Key National Trends

Table 3: Percentage Distribution of Enterprises by Gender of Owner and Sector

SECTOR FEMALE MALE Micro 14.19 85.81 Small 5.06 94.94

Medium 4.21 95.79 All 13.72 86.28

Table 4: State-wise Entrepreneurship Profile

STATE / UNION TERRITORY ALL (in thousands)

Female Male Total Jammu & Kashmir 3.09 11.90 14.99 Himachal Pradesh 1.31 10.62 11.93

Punjab 3.01 45.10 48.11 Chandigarh 0.10 0.90 1.00 Uttarakhand 2.43 21.34 23.77

Haryana 1.46 31.69 33.15 Delhi 0.38 3.38 3.75

Rajasthan 5.99 48.90 54.89 Uttar Pradesh 8.39 179.36 187.74

Bihar 2.57 47.47 50.04 Sikkim 0.02 0.10 0.12

Arunachal Pradesh 0.10 0.32 0.42 Nagaland 0.22 1.12 1.33 Manipur 1.15 3.35 4.49 Mizoram 1.29 2.42 3.72 Tripura 0.16 1.18 1.34

Meghalaya 1.19 1.83 3.01 Assam 4.07 15.80 19.86

West Bengal 4.42 38.84 43.26 Jharkhand 0.75 17.44 18.19

Orissa 2.16 17.44 19.61 Chhattisgarh 2.09 20.68 22.77

Madhya Pradesh 10.18 96.82 107.00 Gujarat 23.40 206.43 229.83

Daman & Diu 0.01 0.58 0.59 Dadra & Nagar Haveli 0.04 1.68 1.72

Maharashtra 8.98 77.61 86.59 Andhra Pradesh 5.23 40.47 45.69

Karnataka 26.68 109.51 136.19 Goa 0.33 2.30 2.62

Lakshadweep 0.00 0.00 0.00 Kerala 38.30 111.89 150.19

Tamil Nadu 54.65 179.23 233.88 Puducherry 0.33 1.12 1.45

Andaman & Nicobar Ils. 0.20 0.55 0.75 ALL INDIA 214.65 1349.32 1563.97

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Table 5: State-wise and Area Wise Entrepreneurship Profile in Percentage

Table 6: Type of Enterprise-wise Entrepreneurship Profile

SECTOR ALL RURAL URBAN

(in thousands) (in thousands) (in thousands) Female Male Total Female Male Total Female Male Total

Micro 210.66 1274.10 1484.76 106.74 580.68 687.42 103.92 693.42 797.34 Small 3.88 72.65 76.53 1.20 18.06 19.26 2.68 54.59 57.27

Medium 0.11 2.57 2.69 0.05 0.68 0.72 0.07 1.90 1.96 Total 214.65 1349.32 1563.97 107.99 599.42 707.40 106.66 749.91 856.57

STATE / UNION TERRITORY

RURAL URBAN (in percentage) (in percentage)

Female Male Total Female Male Total Jammu & Kashmir 10.74 89.26 100 30.27 69.73 100 Himachal Pradesh 10.87 89.13 100 11.49 88.51 100

Punjab 6.96 93.04 100 5.88 94.12 100 Chandigarh 9.89 90.11 100 9.85 90.15 100 Uttarakhand 9.51 90.49 100 11.60 88.40 100

Haryana 4.38 95.62 100 4.43 95.57 100 Delhi 14.81 85.19 100 9.96 90.04 100

Rajasthan 10.17 89.83 100 11.64 88.36 100 Uttar Pradesh 3.37 96.63 100 5.47 94.53 100

Bihar 5.05 94.95 100 5.20 94.80 100 Sikkim 18.03 81.97 100 18.03 81.97 100

Arunachal Pradesh 21.46 78.54 100 27.27 72.73 100 Nagaland 20.49 79.51 100 14.46 85.54 100 Manipur 30.49 69.51 100 19.31 80.69 100 Mizoram 35.91 64.09 100 34.49 65.51 100 Tripura 11.73 88.27 100 12.30 87.70 100

Meghalaya 39.31 60.69 100 39.58 60.42 100 Assam 20.51 79.49 100 20.42 79.58 100

West Bengal 7.33 92.67 100 13.13 86.87 100 Jharkhand 3.30 96.70 100 4.53 95.47 100

Orissa 10.85 89.15 100 11.29 88.71 100 Chhattisgarh 8.14 91.86 100 12.34 87.66 100

Madhya Pradesh 9.12 90.88 100 10.08 89.92 100 Gujarat 15.21 84.79 100 8.87 91.13 100

Daman & Diu 2.26 97.74 100 0.00 100.00 100 Dadra & Nagar Haveli 2.15 97.85 100 2.32 97.68 100

Maharashtra 11.59 88.41 100 9.80 90.20 100 Andhra Pradesh 12.44 87.56 100 10.12 89.88 100

Karnataka 22.39 77.61 100 16.34 83.66 100 Goa 12.41 87.59 100 12.61 87.39 100

Lakshadweep 0.00 100.00 100 0.00 0.00 100 Kerala 26.92 73.08 100 21.88 78.12 100

Tamil Nadu 28.00 72.00 100 21.16 78.84 100 Puducherry 21.45 78.55 100 23.43 76.57 100

Andaman & Nicobar Ils. 28.10 71.90 100 26.27 73.73 100 ALL INDIA 15.27 84.73 100 12.45 87.55 100

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Table 7: Nature of Activity-wise Entrepreneurship Profile

SECTOR ALL RURAL URBAN

(in thousands) (in thousands) (in thousands) Female Male Total Female Male Total Female Male Total

Manufacturing 108.34 941.06 1049.39 55.27 420.93 476.19 53.07 520.13 573.20 Services 87.96 174.41 262.37 46.27 76.77 123.04 41.69 97.64 139.33

Repairing & Maintenance 18.36 233.85 252.21 6.46 101.72 108.18 11.90 132.13 144.04 Total 214.65 1349.32 1563.97 107.99 599.42 707.40 106.66 749.91 856.57

Table 8: Type of Organization-wise Entrepreneurship Profile

SECTOR ALL RURAL URBAN

(in thousands) (in thousands) (in thousands) Female Male Total Female Male Total Female Male Total

Proprietary or HUF 184.70 1224.06 1408.76 97.14 556.47 653.61 87.56 667.59 755.15 Partnership 5.62 57.11 62.73 1.81 18.15 19.96 3.81 38.95 42.77

Pvt. Company 2.48 40.94 43.41 0.95 12.40 13.34 1.53 28.54 30.07 Pub. Ltd. Company 0.79 7.60 8.39 0.31 2.77 3.07 0.48 4.84 5.32

Cooperatives 1.09 3.63 4.72 0.72 1.97 2.69 0.38 1.66 2.03 Others 19.97 15.99 35.96 7.07 7.66 14.73 12.91 8.33 21.23 Total 214.65 1349.32 1563.97 107.99 599.42 707.40 106.66 749.91 856.57

Table 9: Credit Accounts for All Scheduled Commercial Banks in India, as on 31st March 2006

Country Male Female Total India 5862387 778639 6641026

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b. Analysis of Policies, Legal Framework and BDS Providers

Table 10: Regulatory Policies for Enterprise Development

Name of Policy Scope Type

Foreign Direct Investment Registration and Incorporation Gender Neutral

Foreign Technology Agreements Registration and Incorporation Gender Neutral

Simplification of Rules and Procedures for Small & Tiny enterprises under priority sector (MSME Policy Statement, 6th August 1991 – Priority Sector 8.0) Registration and Incorporation

Gender Neutral

Licensing Policy

Licensing for Production, Operations, access to resources and raw materials, transportation and storage

Gender Neutral

Steel Products Standard policy for Manufacturing Ministry of Steel

Licensing for Production, Operations, access to resources and raw materials, transportation and storage

Gender Neutral

Excise and SSI Taxation Gender Neutral

Labour Policies (Labour Policies, Ministry of MSME) Labour wages, welfare and safety Gender Neutral

Industrial Policy - citizens, men and women equally, have the right to an adequate means of livelihood Labour wages, welfare and safety

Women Specific

Industrial Policy -that there is equal pay for equal work for both men women Labour wages, welfare and safety

Women Specific

Adoption of Pollution Control Measures Environmental Protection Gender Neutral

Environmental Regulations (Environmental Control – Environmental Regulations, Ministry of MSME) Environmental Protection

Gender Neutral

Compulsory Legislation on Quality Standards (Modernization and Training, Quality Standards – Ministry of MSME)

Consumer Protection: Quality & Standards

Gender Neutral

Quality Standard Policy Consumer Protection: Quality & Standards

Gender Neutral

Monopolies and Restrictive Trade Practices Act (MRTP Act) Specific sub-sector laws and rules

Gender Neutral

Poverty Eradication - National Policy for the Empowerment of Women (2001) Specific sub-sector laws and rules

Women Specific

Gender Sub-Plan (Gender Budget Initiative) Specific sub-sector laws and rules Women Specific

Women Component Plan (Ninth Five Year Plan (1997-2002) Specific sub-sector laws and rules Pro-Women

The National Commission for Women Act, 1990 Specific sub-sector laws and rules Women Specific

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Table 11: Promotional Policies for Entrepreneurship Development

Name of Policy Scope Type Promotion of Entrepreneurship for Small & Tiny enterprises under priority sector (MSME Policy Statement, 6th August 1991 – Priority Sector 7.0)

Self-Employment and Entrepreneurship

Women Specific

Reservation Policy

Specific sub-sectors – Promoting Infrastructure Development, backward linkages for raw materials

Gender Neutral

Purchase and Price Reference Policy for MSMEs with NSIC Specific sub-sectors Gender Neutral

Export – Import policy for Small Sector

Specific sub-sectors – Promoting Infrastructure Development, backward linkages for raw materials, forward linkages for marketing

Gender Neutral

Technical and Managerial Consultancy Services (Export – Import policy for Small Sector, Ministry of MSME)

Specific sub-sectors – Promoting modernization through technology improvement and skill up gradation

Gender Neutral

Industrial Policy – Nucleus Plants Specific sub-sectors – Promoting Infrastructure Development

Gender Neutral

Infrastructural facilities for Small & Tiny enterprises under priority sector (MSME Policy Statement, 6th August 1991 – Priority Sector 4.0)

Specific sub-sectors – Promoting Infrastructure Development

Gender Neutral

Marketing and Exports for Small & Tiny enterprises under priority sector (MSME Policy Statement, 6th August 1991 – Priority Sector 5.0)

Specific sub-sectors – Promoting forward linkages for marketing

Gender Neutral

Modernization, Technological and quality upgradation for Small & Tiny enterprises under priority sector (MSME Policy Statement, 6th August 1991 – Priority Sector 6.0)

Specific sub-sectors – Promoting modernization through technology improvement and skill up gradation

Gender Neutral

Non-farm employment opportunities for rural and cottage industries

Self-Employment and Entrepreneurship

Gender Neutral

Khadi and Village Industries Commission and the State Khadi and Village Industries Boards (MSME Policy Statement, 6th August 1991 – Priority Sector 11.0)

Specific Sub-Sectors - other village industries

Gender Neutral

National Handloom Development Corporation and National Co-operative Development for assistance to Handloom Sector under village industries for priority sector Traditional Industries

Gender Neutral

Craft Development Centres for Handloom Sector under village industries for priority sector Traditional Industries

Gender Neutral

Central and State Handicraft Development corporations, co-operatives and voluntary organizations for assistance to Handicraft Sector Traditional Industries

Gender Neutral

Marketing assistance to Handicraft Sector Traditional Industries Gender Neutral

Industrial Policy – Economic Federalism for cottage units Industries in backward regions

Gender Neutral

Development of Backward Areas Industries in backward regions Gender Neutral

North Eastern Policy Industries in backward regions Gender Neutral

Women and Industry - National Policy for the empowerment of Women (2001)

Self-Employment and Entrepreneurship

Women Specific

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Table 12: Credit Policies for Entrepreneurship Development Name of Policy Scope Type Industrial Policy – Financial support to small units Credit and Financial support Gender Neutral Financial Support Measures for Small and Tiny Enterprises under Priority Sector (MSME Policy Statement, 6th August 1991 – Priority Sector 3.0) Credit and Financial support Gender Neutral Priority Sector Lending by Banks (Credit Policies, Priority Sector Lending – Ministry of MSME)

Institutional Arrangement - Credit and Financial Support Gender Neutral

Small Industries Development Bank of India (SIDBI) is the principal financial institution for promotion, commercial banks, State Financial Corporations (SFCs) and twin-function State Industrial Development Corporations (SIDCs) at the State level (Credit Policies, Institutional Arrangement – Ministry of MSME) Credit and Financial support Gender Neutral Earmarking of credit for micro enterprises within overall lending to micro and small enterprises Credit and Financial support Gender Neutral Opening of specialized SME branches Credit and Financial support Gender Neutral Enhancement in the limit for computation of the aggregate working capital requirements on the basis of minimum 20% of the projected annual turnover. Credit and Financial support Gender Neutral Enhancement of composite loan to Rs.1 crore (Rs.10 million) Credit and Financial support Gender Neutral No collateral security for loans up to Rs.5 lakh (Rs.0.5 million) Credit and Financial support Gender Neutral Policy Package for Stepping up Credit to SMEs (Credit Policies – Ministry of MSME) Credit and Financial support Gender Neutral Micro Credit - National Policy for the Empowerment of Women (2001) Credit and Financial support Women Specific

Table 13: Regulatory Institutions

Name of Institution Scope Directorates of Industries Policy Making & Licensing for commencing production, raw materials Bureau of Indian Standards (BIS) Consumer Protection Registrar of Cooperatives, Registrar of Companies Ratifying incorporation District Industries Centre Registration Tax Authorities, Excise Departments Revenue Collection Labour Welfare Department, Factories Inspector Labour Law Enforcement Pollution Control Board, Forest Department Environmental Protection

xvii

Table 14: Promotional Institutions Name of Institution Scope Directorates of Industries, MSME Development Institute of India, MSME-DO, NSIC

Overall Industrial Promotion

DICs, KVIB, KVIC, DRDA for IRDP-ISB sector, Development Support Centres

Rural Industry Promotion

CRRI, CIFRI, MPEDS, CSTRI, CTRTI, IIHTs, CLRI, CGCRI, CIMAP, CIPET,

Technology Development

IDCs for industrial estates and work sheds, SEBS for electricity

Infrastructure Development

Industrial Training Institutes, Sectoral Training Institutes, TRYSEM trainers, TCOs, NIMSME, NIESBUD

Training and Technical Consultancy

ICECD, SEWA, Taleem Research Foundation, Aga Khan Rural Support Program, VIKSAT Foundation

Promotion by Non Government agencies & organizations

Gender Resource Centre, National Mission for Empowerment of Women

Women Development

Table 15: Credit Institutions

Name of Institution Scope Commercial Banks, Regional Rural Banks, Co-operative Banks

Credit and Finance Support

NABARD, SIDBI All India Refinance/Development Finance Institutions SFCs, KVIBs, Development Finance Corporations

State Level Development Finance Institutions

Angel Investors, Venture Finance Non-banking finance companies, Informal Credit institutions

EXIM Bank Import & Export - Finance

Table 16: Representational Institutions Name of Institution Scope Confederation of Indian Industry - CII, Chamber of Commerce of states, Fedration of Indian Chambers of Commerce and Industry, TIE, Ahmedabad Management Association

Industry Organizations

FICCI LO, GCCI Business Women wing, Ladies Wing Indian Merchants Chamber, TIE Stree Shakti

Ladies Wings of Industry Organizations

ALEAP, AWAKE, FIWE, COWE, NAWO, WWF, CWEI, WIT, EWIT

Association of Women Entrepreneurs, Networks of women entrepreneurs

Trade Unions, Cooperatives, Formal Producer Associations

Producers' Associations

Table 17: Regulatory Schemes for Enterprise Development

Name of Scheme Scope Type Buffer Stocks for Critical inputs – Industrial Policy Subsector Gender Neutral SSI Scheme without CENVAT and with CENVAT

under Excise Policy with respect to specified turnover and goods

Taxation Gender Neutral

Incentives to SSI Units acquiring ISO-9000 Certification

Quality & Standards Gender Neutral

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Table 18: Promotional Schemes for Enterprise Development Name of Scheme Scope Type

MSME MDA – Marketing Development Assistance Scheme (Ministry of Commerce) Export Promotion Gender Neutral

Awards to Exporters Export Promotion Gender Neutral National Awards for Quality Products Export Promotion Gender Neutral

Technology Development Scheme SIDBI Export Promotion Gender Neutral Quality Awareness Scheme Small Industries

Services Institute Export Promotion Gender Neutral Subsidy for Iso Certification Export Promotion Gender Neutral

Training in Packaging Indian Institute of Packaging Export Promotion Gender Neutral

Barcoding of Exports with EAN India Export Promotion Gender Neutral Technology Improvement Schemes Export Promotion Gender Neutral

Marketing and Promotional Assistance by NSIC Export Promotion Gender Neutral Technical Assistance by NSIC Export Promotion Gender Neutral

Project Package Scheme Specific Subsector -

Handloom Gender Neutral Welfare Package Scheme and Organization

Development Package scheme Specific Subsector -

Handloom Gender Neutral The programmes of intensive development of KVI through area approach with tie-up with

DRDA, TRYSEM and ongoing developmental programmes

Self-Employment and Entrepreneurship Pro Women

The Micro, Small & Medium Enterprises Development Organisation (MSME-DO), the various State Small Industries Development

Corporations (SSIDCs), the nationalised banks and even NGOs are conducting various

programmes including Entrepreneurship Development Programmes (EDPs)

Self-Employment and Entrepreneurship

Women Specific & Pro Women

MSME-DO has introduced process/product oriented EDPs in areas like TV repairing,

printed circuit boards, leather goods, screen printing etc.

Self-Employment and Entrepreneurship

Women Specific & Pro Women

A special prize to "Outstanding Women Entrepreneur" of the year is being given to

recognise achievements made by and to provide incentives to women entrepreneurs

Self-Employment and Entrepreneurship Women Specific

training for credit utilisation as also credit delivery skills for the executives of voluntary

organisations working for women - SIDBI Self-Employment and

Entrepreneurship Women Specific Support to Training and Employment

Programme Self-Employment and

Entrepreneurship Women Specific Swawlamban, erstwhile Setting up of Employment and Income Generating

Trainingcum- Production Units for Women (NORAD)

Self-Employment and Entrepreneurship Women Specific

National Mission for Empowerment of Women

Self-Employment and Entrepreneurship Women Specific

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Integrated Scheme for Women Empowerment Self-Employment and

Entrepreneurship Women Specific

Socio-Economic Program Self-Employment and

Entrepreneurship Women Specific

The Swa-Shakti Project, a scheme for Rural Women’s Development and Empowerment

Self-Employment and Entrepreneurship

Women Specific

Priyadarshini, Women’s Empowerment and Livelihood Programme in the Mid Gangetic

Plains

Self-Employment and Entrepreneurship

Pro Women

Swarnjayanti Gram Swarozgar Yojana (SGSY) Self-Employment and

Entrepreneurship Pro Women

Sampoorna Grameen Rozgar Yojana (SGRY) Self-Employment and

Entrepreneurship Pro Women Assistance for Rural Employment Guarantee

Schemes Self-Employment and

Entrepreneurship Pro Women National Rural Employment Guarantee Act

(NREGA) Self-Employment and

Entrepreneurship Pro Women National Common Minimum Programme

(NCMP) Self-Employment and

Entrepreneurship Pro Women The Swarna Jayanti Shahari Rozgar Yojana

(SJSRY) Self-Employment and

Entrepreneurship Pro Women Science and Technology Programmes for Socio -

Economic Development Specific Subsector Pro Women National Science and Technology Entrepreneurship Development

Self-Employment and Entrepreneurship Pro Women

Internship for Women for Self Employment Self-Employment and

Entrepreneurship Women Specific Rashtriya Krishi Vikas Yojana (RKVY) Specific Subsector Pro Women

Vocational Training for Women Self-Employment and

Entrepreneurship Women Specific Schemes for Leadership Development of

Minority Women Self-Employment and

Entrepreneurship Women Specific Workshed Scheme for Khadi Artisans Specific Subsector Pro Women

Trade Related Entrepreneurship Assistance and Development (TREAD) Scheme for Women

Self-Employment and Entrepreneurship Women Specific

Hire Purchase Scheme, NSIC Specific Subsector Pro Women Partiicipation in International Trade Fair Specific Subsector Pro Women

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Table 19: Credit Schemes for Enterprise Development

Name of Scheme Scope Type

Financial Assistance for Exporters by NSIC Credit and Finance

support Gender Neutral Income Generating Scheme, implemented by the Department of Women and Child Development,

Credit and Finance support Women Specific

Mahila Udyam Nidhi - SIDBI Credit and Finance

support Women Specific

Mahila Vikas Nidhi - SIDBI Credit and Finance

support Women Specific informal channel for credit needs on soft terms giving

special emphasis to women - SIDBI Credit and Finance

support Pro Women Grant for setting up a production unit is also available

under Socio-Economic Programme of Central Social Welfare Board

Credit and Finance support Pro Women

Rashtriya Mahila Kosh (Credit for Women) Credit and Finance

support Women Specific Grant in Aid Scheme - Ambedkar Hastshilp Vikas

Yojna Credit and Finance

support Gender Neutral

Credit Support Programme Credit and Finance

support Pro Women

Rajiv Gandhi Udyami Mitra Yojana Credit and Finance

support Pro Women

Prime Minister’s Employment Generation Programme Credit and Finance

support Pro Women Credit Guarantee Fund Scheme - The guarantee cover

is up to 75 per cent of the credit sanctioned [85% in respect of loans up to Rs.5 lakh ($12,500) and 80% for loans provided to MSEs owned/operated by women

and all loans in the North- East Region]. Credit and Finance

support Pro Women

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c. Primary Data (Women Entrepreneurs’ Survey)

Demographic Profile - Women Entrepreneurs Table 20.1: Age Distribution of Women Entrepreneurs

Age of Entrepreneur Number Percentage 24 Years & below - - 25 to 29 Years 3 5 30 to 39 Years 19 30 40 to 49 Years 22 35 50 Years & above 19 30 Total 63 100

Table 20.2: Education Status of Women Entrepreneurs

Education Qualification Number Percentage Postgraduate 30 48 Graduate 21 33 Higher Secondary (till 12th grade) 3 5 Primary (till 8th grade) 3 5 Diploma 1 2 Others Professional Degree (Ph.D, CA) 4 6 Not responded 1 2 Total 63 100

Table 20.3: Marital Status

Martial Status Number Percentage Single 10 16 Married 47 75 De facto - - Widow 6 10 Total 63 100

Children Number Percentage Married Women/Widow Having Children 51 81 Married Women/Widow Not having Children 2 3 Single Women 10 16 Total 63 100

Table 20.4: Support at Home (maids/childcare etc.)

Support at home Number Percentage Yes 51 81 No 12 19 Total 63 100

Table 20.5: Training related to Business

Training Number Percentage Women Who Received training (related to business) 34 54 Women Who Did not receive training (related to business) 29 46 Total 63 100

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Table 20.6: Type of training Type of Trainings Number of Entrepreneurs Entrepreneurship Development 21 Technology Upgrade 8 Communications 4 Management & Leadership 13 Others (Designing, Jewellery Design, Import-Export) 5

Table 20.7: Work Experience

Total Work Experience of Entrepreneurs Number Percentage Less than 1 year 3 5 1 - 2 Years 3 5 2 - 5 Years 9 14 5 - 10 Years 11 17 10 Years or more 37 59 Total 63 100

Table 20.8: Previous Experience (before becoming an Entrepreneur)

Occupation before becoming an Entrepreneur Number Percentage Employed full time 25 40 Employed part time 10 16 Looking for work - - Homemaker 15 24 Studying 8 13 Self Employed 4 6 No occupation 1 2 Total 63 100

Table 20.9: Previous Ownership of Enterprise

Owned Enterprise previously Number Percentage Yes 8 13 No 55 87 Total 63 100

Table 20.10: State Wise Distribution of Women Enterprise

State of Entrepreneur Number Percentage Rajasthan 5 8 West Bengal 2 3 Maharashtra 1 2 Karnataka 9 14 Gujarat 15 24 Kerala 1 2 Assam 8 13 Andhra Pradesh 2 3 Delhi 8 13 Manipur 1 2 Tamil Nadu 1 2 Nagaland 1 2

Not responded 9 14 Total 63 100

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Nature of Business and its Profile

Table 21.1: Reasons to start Enterprise

Reasons to start Enterprise Number of Entrepreneurs

Gap in the Market 18

Previous Experience or knowledge 39

Availability of Raw Material 5

Interest 2

Family Business 1

Wanted to become Entrepreneur 1

Create own brand/do something on own 4

Flexible timings and work from home 1

Employment for rural women 1

Table 21.2: Motivations to start Enterprise

Type of Motivation Number of

Entrepreneurs

To continue in the family occupation 8

Supplement the family income 18

Financial need 13

To pass time 1

Waiting for marriage -

Economic independence 41 Improve social/familial status 16 Lack of other employment opportunities 2

Profit-making aspirations 27

Sense of self achievement 46

Encouragement from friends 4

Encouragement from family 21 Table 21.3: Help in starting the Enterprise Consultation on business Number Percentage Husband 26 41 Father 4 6 Mother 4 6 Family 4 6 A business mentor 5 8 Mother-in-law 1 2 Husband & father 4 6 Agency or institution 3 5 Did not take advise/consultation 8 13 Not responded 4 6

Total 63 100

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Table 21.4: Continuation of mentorship Does this person continue to mentor you? Number Percentage Yes 41 65

No 12 19

No, but some one else 2 3

Not responded 8 13

Total 63 100

Table 21.5: Institution and Business Related Challenges

(while Starting Enterprise)

Institutional and business related challenges Number of Entrepreneurs

Market conditions 41

Legal / regulatory conditions 13

Financial related difficulties 30

Means of production 12

Challenges with the raw material 15

Labour 20

No Challenges 3

Not responded 2

Table 21.6:Personal Challenges

Personal challenges Number of Entrepreneurs

Lack of self confidence 3 Limited networks and industry contacts 37

Lack of information available 26

Combining work and family life 41

Challenging government institutions and other officials 13

Attitude of male colleagues 1

Information on financial laws 1

Limited office set up 1

Social challenges 3

No Challenges 4

Not responded 2

Table 21.7: Legal Status Enterprise

Type of Enterprise Proprietorship Partnership Pvt. Ltd Ltd Total Percentag

e Total 29 9 24 1 63 100

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Table 21.8: Sector wise Distribution of Enterprise

Industrial Sector Manufacturing Services Trading Total

Percentage

Food 4 2 6 10

Textile 16 1 4 21 33

IT - 2 - 2 3

Chemicals & Allied 2 - - 2 3

Electric Goods 2 - - 2 3

Education & Training -- 12 - 12 19

Services (Medical & Tourism) 1 3 - 4 6

Construction, Furniture 1 1 1 3 5

No responded 2 9 - 11 17

Total 28 30 5 63 100

Table 21.9: Type of Enterprise Type of Enterprise Number Percentage Manufacturing 28 44

Services 30 48

Trading 5 8

Total 63 100

Table 21.10: Years of Enterprise

Years of Enterprise Number Percentage less than 1 year 5 8

1 - 3 Years 7 11

3 - 5 Years 5 8

5 - 7 Years 4 6

7 - 10 Years 6 10

10 Years and above 36 57

Total 63 100

Table 21.11: How did you start an enterprise?

How did you come to be an Entrepreneur Number Percentage Create the Enterprise 57 90

Purchase the Enterprise 1 2

Inherit the Enterprise 4 6

Others 1 2

Total 63 100

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Table 21.12: Financial Arrangements Arrangements Number Percentage

Having financial arrangements 28 44

Not having financial arrangements 31 49 Do not know 4 6

Total 63 100

Table 21.14: Source of Information for Credit

Information Source Number Percentage Family Member 11 39 Friend 3 11 Local Leader 2 7 Bank officer 4 14 Internet 3 11 Others (Agent, Own experience) 2 7 own experience 1 4 Not responded 2 7 Total 28 100

Table 21.15: Problems faced with Credit Support

Problems while seeking credit Number of Entrepreneurs

Procedural 15

Sanction 7

Disbursement 3

Personal 1

Attitude/behaviour of officers 5

Documentation 10

Discrimination 3

Guarantor related 8 Others 1 No Problems 4 Not responded 4

Table 21.13: Access to Credit & Finance

Financing Arrangements NGO

Govt. Agency

Venture Capital Bank

No arrangements Total Percentage

Working Capital Financing 2 2 - 11 - 15 54 Fixed Assets Financing 2 - - 4 - 6 21

Other credits 1 - - 6 - 7 25

Not responded - - - 0 - - -

Total 5 2 - 21 - 28 100

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Table 21.17: Access to Government Schemes

Availed/applied/aware of Government Schemes Number Percentage

Yes 13 21

No 29 46

Not responded 21 33

Total 63 100

Table 21.18: Source of Information for Government Schemes Government Schemes Number Percentage

Family Member 2 15

Friend 3 23

Local Leader - -

Government officer 4 31

Internet 1 8

Others 3 23

Total 13 100

Table 21.19: Problems faced in accessing Government Schemes

Government Schemes Application Procedure Number Percentage

Very Easy - -

Easy 3 23

Neither Easy or Difficult 5 38

Difficult 3 23

Very Difficult 2 15

Total 13 100

Table 21.16: Reason for not seeking Financial Support

Reason for not seeking financial support Number Percentage

Adequate personal funds 12 39

Family resources 10 32

Personal savings 4 13

Difficulty in obtaining credit 1 3

Complicated procedures to obtain credit 2 6

Others 1 3

Not responded 1 3

Total 31 100

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Table 21.20: Recommendation for

Government Schemes Recommend Govt. Schemes to

Women Entrepreneurs? Number Percentage Yes 18 29

No - -

Not responded 45 71

Total 63 100

Profile – Women Enterprise

Table 22.1: Annual Revenue of EnterpriseAnnual Revenue Number Percentage

Less then 10 Lakhs 10 16 10 - 25 Lakhs 9 14 25 lakhs - 2 Crore 13 21 2 - 5 Crores - - 5 - 10 Crores 4 6 10 Crores & above 2 3 Not responded 25 40 Total 63 100

Table 22.2: Time taken to achieve Profit

Time to achieve profit Number Percentage 6 months - 1 Year 23 37 1 - 2 Years 9 14 2 - 3 Years 3 5 3 Years & Above 8 13 Not responded 20 32 Total 63 100

Table 22.3: Time taken to begin the Operation of Enterprise

Time taken to start operating Number Percentage 6 months - 1 Year 40 63 1 - 2 Years 10 16 2 - 3 Years 1 2 3 Years & Above 3 5 Not responded 9 14 Total 63 100